NICL:CC - Nickel Rock Options out the Remaining 20% Interest of its BC Nickel Claims to Surge Battery Metals Inc.
(TheNewswire)
Coquitlam, BC – TheNewswire - April 3, 2023- Nickel Rock ResourcesInc. (the “Company” and “NickelRock”) ( TSXV:NICL ) , ( OTC:NICKLF ) , ( FSE:NMK2 ) announces that ithas entered into a n option agreement with SurgeBattery Metals Inc. (“Surge”) dated March 31, 2023 (the“Agreement”), whereby Surge may acquire the remaining 20%undivided interest in the HN4 and N100 nickel claims, located inNorthern British Columbia (the “Transaction”).
Option of the Remaining 20 % Interestin the HN4 and N100 Nickel Properties to Surge Battery Metals Inc.( TSXV: NILI, OTC: NILIF, FRA:DJ5C ).
Previously, t he Company enteredinto a Property Option Agreement to earn an undivided 80% interest incertain mineral claims to Surge Battery Metals Inc. ( News Release July 8,2021 ). The Nickel Project consists of twonon-contiguous mineral claims groups consisting of six mineral claimblocks located in central British Columbia. One claim in the MountSidney Williams area (The HN4 Nickel Claim), covers 1863 hectaresimmediately south of and adjacent to the Decar Project, currentlybeing advanced by FPX Nickel Corp. ( TSX-V: FPX ) and 5claims in the Mitchell Range area, northeast of Decar, (The N100Nickel Claim Group) covering 8659 hectares. Therefore, as a result ofthe consolidation Agreement, Surge will own a 100% undivided ownershipin the claims (three of the claims are subject to 2% NSR, includingthe HN4 claim and the two southernmost claims of the N100 claimgroup).
Consideration Payable to Nickel Rock: Upon the payment of 1,000,000 Surge commonsshares to the Company and in consideration of Surge having fullycompleted the terms of the underlying Option Agreement dated July8 th ,2021, Nickel Rock shall transfer 100% interest in the claims to Surge. The Company confirms that the Acquisition is a “related” partytransaction and that the Transaction is subject to TSX VentureExchange approval.
All securities issued in connection with theacquisition are subject to a four month and a day holdperiod in accordance with applicable Canadian Securities Laws.
Pursuant to TSXV Policy5.9 and Multilateral Instrument 61-101 -- Protection of MinoritySecurity Holders in Special Transactions (" MI61-101 "), the Option Agreement constitutesa "related party transaction" due to the fact that NickelRock CFO is also the CFO of Surge. The Company relied on Section5.5(a) of MI 61-101 for an exemption from the formal valuationrequirement and Section 5.7(1)(a) of MI 61-101 for an exemption fromthe minority shareholder approval requirement of MI 61-101 as the fairmarket value of the Transaction did not exceed 25% of the Company'smarket capitalization.
Mr. Tim Fernback, President and CEO stated“Completion of the Transaction with Surge to acquire the HN4 andN100 group of mineral exploration claims highlights the value of theoverall area for nickel exploration. Our remaining interest in theseclaims, were not core holdings for the Company. Completing thisTransaction with Surge will allow our Company to focus on ourimportant core nickel and lithium holdings in NorthAmerica ”.
AboutNickel Rock Resources Inc.
Nickel Rock Resources Inc. is a Canadian basedexploration company whose primary listing is on the TSX VentureExchange. The Company’s maintains a focus on exploration for highvalue battery metals required for the electric vehicle (EV) market. www.nickelrockresources.com
About the British Columbia, NickelProjects
The Mount Sidney Williams Group consists of severalclaim blocks in the areas on the west side of Mount Sidney Williams,located 100 kilometres northwest of Fort St. James, B.C., in theOmineca mining division. The properties lie in close proximity to theDecar Project of FPX Nickel Corp.
Metallic mineralization includes nickel, cobalt, andchromium. At least some of the nickel mineralization occurs asawaruite.
About Clayton Valley LithiumProject
The Company owns a 100% in 113 lithium lode and placerclaims covering over 640 hectares at Silver Peak, Nevada on the westside of Clayton Valley. Clayton Valley is a down-dropped closed basinformed by the Miocene age Great Basin extension and is still activedue to movement along the Walker Lane structural zone. As a result,the basin has preserved multiple layers of lithium bearing volcanicash, resulting from multiple eruptive events over the past 6 millionyears including eruptions from the 700,000-year-old Long ValleyCaldera system and related events. These ash layers are thought tocontribute to the lithium brines extracted by Albemarle and are alsolikely involved in the formation of the exposed lithium rich claydeposits on the east side of Clayton Valley.
On Behalf of the Board of Directors
“Tim Fernback”
604-428-5690
Tim Fernback, President & CEO
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
This news release may containforward-looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward-looking. Forward-looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. General business conditions are factors that could causeactual results to vary materially from forward-lookingstatements.
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