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Cornish Metals Announces Sale of Nickel King Property

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Cornish Metals Announces Sale of Nickel King Property

 

 

 

 

 

Cornish Metals Inc. (TSX-V: CUSN) (AIM:CUSN) is pleased to announce that it has entered into a binding letter of intent with Northera Resources Ltd. for the sale of the Company’s 100% interest in the Nickel King and Opescal Lake properties for a total consideration of up to C$8 million.

 

Ken Armstrong, Interim CEO and Director of Cornish Metals, stated: “The sale of Nickel King aligns with Cornish Metals’ objective to focus its efforts on advancing its 100% owned and fully permitted South Crofty tin project, in the UK, towards a construction decision. Cornish Metals will retain exposure to any future exploration success at Nickel King, as Northera works to recommence exploration activities at the Nickel King Property which comprises approximately 4,000 hectares in mining leases and mineral claims in Canada’s Northwest Territories.”

 

Under the terms of the Agreement:

  1. Northera will pay Cornish Metals a non-refundable cash payment of C$100,000 within five days of signing the Agreement.
  2. Within 95 days of signing the agreement, Cornish Metals will transfer to Northera the legal and beneficial title to the mining leases and mineral claims comprising the Nickel King Property, and Northera will pay the Company a non-refundable cash payment of C$900,000.
  3. Cornish Metals and Northera will enter into a final definitive agreement on or before the date that is 60 days following the signing of the Agreement.
  4. Upon completion of a go public transaction by Northera, resulting in a listing of securities on the TSX Venture Exchange, or other stock exchange, Northera will issue to Cornish Metals common shares in the capital of Northera having an aggregate market value equal to C$7 million. 1

 

The Company’s wholly owned Nickel King Property is located in the Northwest Territories, 135 km northeast of Stony Rapids, Saskatchewan. The Nickel King Nickel-Copper-Cobalt deposit is hosted within two arcuate stacked, moderately south-dipping norite sills and mineralisation has been traced over a total strike length of approximately 2,600 metres. An NI 43-101 compliant geological resource model yielded 11.1 Mt grading at 0.40% Ni, 0.10% Cu and 0.018% Co containing 44,500 t of Ni, 10,600 t of Cu and 2,200 t of Co in the Indicated Category. The total Inferred Resource is 33.1 Mt grading at 0.36% Ni, 0.09% Cu and 0.017% Co containing 119,300 t of Ni, 29,000 t of Cu and 5,600 t of Co. Refer to the Nickel King Technical Report dated 2 June 2010.

 

The Nickel King Property has a book value of nil.

 

ABOUT CORNISH METALS

 

Cornish Metals is a dual-listed mineral exploration and development company focused on advancing the South Crofty high-grade, underground tin project through to a construction decision, as well as exploring its additional mineral rights, located in Cornwall, United Kingdom.

  • South Crofty is a historical, high-grade, underground tin mine that started production in 1592 and continued operating until 1998 following over 400 years of continuous production;
  • The Project possesses Planning Permission for underground mining (valid to 2071), to construct new processing facilities and all necessary site infrastructure, and an Environmental Permit to dewater the mine;
  • South Crofty is one of the highest grade tin Mineral Resources globally and benefits from existing mine infrastructure including multiple shafts that can be used for future operations;
  • The 2024 Preliminary Economic Assessment for South Crofty validates the Project’s potential (see news release dated April 30, 2024 and the Technical Report entitled “South Crofty PEA” dated April 8, 2024):
    • US$201 million after-tax NPV8% and 29.8% IRR
    • 3-year after-tax payback
    • 4,700 tonnes average annual tin production in years two through six
    • Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin
    • Total after-tax cash flow of US$626 million from start of production
  • Tin is a Critical Mineral as defined by the UK, American, and Canadian governments;
  • Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia;
  • There is no primary tin production in Europe or North America;
  • Tin connects almost all electronic and electrical infrastructure, making it critical to the energy transition – responsible sourcing of critical minerals and security of supply are key factors in the energy transition and technology growth;
  • South Crofty benefits from strong local community, regional and national government support.
  • Cornish Metals has a growing team of skilled people, local to Cornwall, and the Project could generate up to 320 direct jobs.

 

The 2024 Preliminary Economic Assessment for South Crofty is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves. There is no certainty that the 2024 Preliminary Economic Assessment will be realised. Mineral resources that are not mineral reserves do not have economic viability.

 

TECHNICAL INFORMATION

 

This news release has been reviewed and approved by Mr Owen Mihalop, MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng, Chief Operating Officer for Cornish Metals Inc. who is the designated Qualified Person under NI 43-101 and a Competent Person as defined under the JORC Code (2012). Mr. Mihalop consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

 

Posted June 17, 2024

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