NLPXF - Noble Enters a Transaction with Canada Nickel to Vend Nickel Prospects
(TheNewswire)
Toronto, Ontario - TheNewswire - April 22, 2021 - Noble Mineral Exploration Inc. ( “Noble” or the “Company” )(TSX V:NOB ) ( FRANKFURT:NB7 ) ( OTC :NLPXF) is pleased to announce thatit has entered into a binding letter of intent with Canada Nickel Company Inc, (“Canada Nickel”) to vend the properties previously optioned to CanadaNickel (the "Transaction"), plus additional claims held byNoble. Under the terms of the Transaction, Noble and Canada Nickel will terminate the current option and jointventure agreements with Canada Nickel acquiring 100% of the applicableproperty rights or claims, in return for 3.5 million common shares ofCanada Nickel. Following the closing, Noble anticipates distributingsubstantially all of those Canada Nickel shares to Noble’sshareholders as an in-kind dividend, based on a record date to beestablished post closing.
Vance White, President and CEO of Noble said,“ This acquisitioneffectively consolidates all of the key nickel targets withinNoble’s Project 81 land package with Canada Nickel, which is led byMark Selby and his well recognized team of experts in theNickel industry. It will allow Noble to focus on the multiple gold/VMStargets in its remaining substantial land package. The anticipatedpost-closing dividend of approximately 3.5 million Canada Nickelshares to the Noble shareholders, which are valued at more than $11million based on current market value, would provide Noble’sshareholders with a direct interest in not only the option propertiesbut also the main Crawford Nickel deposit on which we expectadditional drill hole results to be reported and a PEA in the verynear term. Noble will retain a 2% NSR (subject to buyback terms) onthe staked mining claims in Mahaffy, MacDiarmid and BradburnTownships, except a smaller number of claims acquired by Noble in2021. Further, the transaction will eliminate the need for Noble carryout any downstream financing in order to maintain a Joint Ventureinterest in the properties that would be sold. Even after completionof the transaction and distribution of 3.5 million Canada Nickelshares, Noble would retain more than 2 million shares of Canada Nickelacquired in 2020 when the Crawford Nickel project was sold to CanadaNickel.”
Transaction Summary
Under the terms of the binding letter of intent, CanadaNickel has agreed to issue 3.5 million of its common shares to Noblein return for:
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- A 100% interest in thepreviously optioned claims (see press releases dated May 12, 2020 andFebruary 17, 2021) plus additional claims, including Noble’sprospective Bradburn/Dargavel property.
- The right to re-purchase 1%(half) of the 2% royalty held by Noble in respect of certainproperties that would be subject to a royalty held by Noble, for are-purchase price of $1.5 million per property if re-purchased duringthe one-year period after closing, increasing to $2.5 million perproperty if re-purchased during the second year after closing, andincreasing to $5 million per property if re-purchased after suchsecond year after closing.
The Transaction, as well as any distribution by Nobleof shares of Canada Nickel, are subject to completion of definitiveagreements and approval from the TSX Venture Exchange, as well ascompliance with legal and regulatory requirements.
About Noble Mineral ExplorationInc.:
Noble Mineral Exploration Inc. is a Canadian-basedjunior exploration company which, in addition to its shareholdings inCanada Nickel Company Inc., Spruce Ridge Resources Ltd. and MacDonaldMines Exploration Ltd., and its interest in the Holdsworth goldexploration property in the area of Wawa, Ontario, holds approximately72,000 hectares of mineral rights in the Timmins-Cochrane areas ofNorthern Ontario known as Project 81. Project 81 hosts diversifieddrill-ready gold, nickel-cobalt and base metal exploration targets atvarious stages of exploration. More detailed information is availableon the website at www.noblemineralexploration.com .
Noble’s common shares trade on the TSX VentureExchange under the symbol “NOB”.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release. No stock exchange,securities commission or other regulatory authority has approved ordisapproved the information contained herein.
The foregoing information may contain forward-lookingstatements relating to the future performance of Noble MineralExploration Inc. Forward-looking statements, specifically thoseconcerning future performance, are subject to certain risks and uncertainties, andactual results may differ materially from the Company’s plans andexpectations. These plans, expectations, risks and uncertainties aredetailed herein and from time to time in thefilings made by the Company with the TSX Venture Exchange andsecurities regulators. Noble Mineral Exploration Inc. does notassume any obligation to update or revise its forward-lookingstatements, whether as a result of new information, future events orotherwise.
Contacts:
H. Vance White, President
Phone: 416-214-2250
Fax: 416-367-1954
Email: info@noblemineralexploration.com
Investor Relations
Email: ir@noblemineralexploration.com
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