(TheNewswire)
Toronto – TheNewswire - March 9, 2023 –Nuinsco Resources Limited (“ Nuinsco ” or the “ Company ”) (CSE:NWI)today announced that it has optioned its Zig Zag Project to FirstClass Metals PLC (“ FCM ”). The option, executed on March 8,2023, will provide the Company with additional non-dilutive funding asit increasingly focusses on its extraordinary Prairie Lakephosphate/Critical Minerals Project located near Marathon innorthwestern Ontario.
The Prairie Lake project is a very largephosphate/Critical Minerals resource , superblylocated in a Tier 1 mining jurisdiction in North America. It is apotential source of vital elements needed for applications inagriculture/food production, transportation, power distribution,energy storage, green technologies and a host of others. It is ofimmense value to a secure critical minerals supply chain; an issueidentified by numerous governments and agencies in the recent past. Prairie Lake is located near the north shore of Lake Superior,putting it in close or easily accessible reach of:
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The towns of Marathon and Terrace Bay, able to supplyskilled, local workforce.
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Paved Highways 17 and 11.
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Canadian Pacific Railway and Canadian National Railwaynetworks.
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High capacity (230kV) electrical power transmissionline.
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Only 50km from the Marathon deep water port project.Deep-water ports also located at Thunder Bay and Sault Ste. Marie –ready access to global markets.
Paul Jones, Nuinsco’s CEO, stated: “We are pleasedwith the completion of the option agreement on the Zig Zag projectwith First Class Metals. It will provide additional funding to allowus to further work on the Company’s Prairie Lake project with all ofits potential to contribute significantly to the globalphosphate/Critical Minerals supply chain.”
Terms of the deal:
FCM has an option to earn-in up to an 80% interest inthe Zig Zag project mining claims. The payments for the exercise ofthis option include a cash component of ,000 and a sharecomponent of ,000 in FCM shares spread across approximately 3.5years. Additionally, FCM has committed toundertake exploration related expenses on the property over the sameperiod to a value of ,000.
Table 1 Zigzag Option Schedule |
Cash (CAD$) | FCM Shares (CAD$) | Annual Work Commitment (CAD$) | |
On Signing | 50,000 | 25,000 | 0.00 |
June 01, 2023 | 75,000 | 30,000 | 50,000 |
June 01, 2024 | 100,000 | 50,000 | 100,000 |
June 01, 2025 | 125,000 | 60,000 | 150,000 |
June 01, 2026 | 150,000 | 85,000 | 250,000 |
Total | 500,000 | 250,000 | 550,000 |
These payments and work commitments may be acceleratedat FCM’s option. Upon its completion, the Zig Zag Lake project willbe owned by FCM and Nuinsco on an 80:20 basis and the parties willhave deemed to enter a joint venture for the development of thesemining claims. Should either party not wish to contribute to thisjoint venture a standard industry dilution clause shall apply. Ifeither party dilutes to a 10% ownership interest or lower, theirentire interest will automatically convert into a net smelter royalty(“ NSR ”) royalty, and the other party shall be the 100% owner ofthe Zig Zag project mining claims. Additionally, half of such NSRroyalty payment may be purchased by the other party by paying a sum of 750,000.
About Nuinsco ResourcesLimited
Nuinsco Resources has over 50years of exploration success and is a growth-oriented,multi-commodity mineral exploration and development company focusedon prospective opportunities in Canada and internationally.Currently the Company has three properties in Ontario – the largemulti-commodity (phosphate, rare earth element, niobium, tantalum)Prairie Lake project near Marathon-Terrace Bay, the Zig Zag Lake(lithium, tantalum) near Armstrong and the high-grade Sunbeam goldproperty near Atikokan both currently optioned to First Class MetalsPLC. In addition, Nuinsco has an agreement for gold exploitation atthe El Sid project in the Eastern Desert ofEgypt.
Forward-LookingStatements
This news release contains certain"forward-looking statements." All statements, other thanstatements of historic fact, that address activities, events ordevelopments that Nuinsco believes, expects or anticipates will or mayoccur in the future are forward-looking statements. Forward-lookingstatements are often, but not always, identified by the use of wordssuch as "seek," "anticipate," "believe,""plan," "estimate, “expect," and"intend" and statements that an event or result"may," "will," "can,""should," "could," or "might" occur orbe achieved and other similar expressions. These forward-lookingstatements reflect the current expectations or beliefs of Nuinscobased on information currently available to Nuinsco. Forward-lookingstatements are subject to a number of risks and uncertainties that maycause the actual results of Nuinsco to differ materially from thosediscussed in the forward-looking statements, and even if such actualresults are realized or substantially realized, there can be noassurance that they will have the expected consequences to, or effectson Nuinsco. Factors that could cause actual results or events todiffer materially from current expectations include, among otherthings, failure to successfully complete financings, capital and othercosts varying significantly from estimates, production rates varyingfrom estimates, changes in world copper and/or gold markets, changesin equity markets, uncertainties relating to the availability andcosts of financing needed in the future, equipment failure, unexpectedgeological conditions, imprecision in resource estimates, success offuture development initiatives, competition, operating performance offacilities, environmental and safety risks, delays in obtaining orfailure to obtain tenure to properties and/or necessary permits andapprovals, and other development and operating risks. Anyforward-looking statement speaks only as of the date on which it ismade and, except as may be required by applicable securities laws,Nuinsco disclaims any intent or obligation to update anyforward-looking statement, whether as a result of new information,future events or results or otherwise. Although Nuinsco believes thatthe assumptions inherent in the forward-looking statements arereasonable, forward-looking statements are not guarantees of futureperformance and accordingly undue reliance should not be put on suchstatements due to the inherent uncertainty therein.
To learn more, please visit www.nuinsco.ca or contact: | ||||
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Paul Jones, CEO | Sean Stokes, Executive VP | Cathy Hume, Consultant | |
613-867-5902 | 416-712-7481 | 416-868-1079 877-838-1079 | |
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