
Nickel North Exploration Corp. (TSX-V:NNX) is pleased to announce that the Company has entered into an option agreement to sell a 100% undivided interest in the Hawk Ridge nickel/copper project located in northeastern Quebec to 1844 Resources (TSX-V:EFF), in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into five phases.
CEO of Nickel North, Mr. Tony Guo, comments “This is a milestone transaction for Nickel North in partnering up with Mr. Laberge and team at 1844 in advancing Hawk Ridge in a world in drastic need for a quality North American nickel resource, especially one surrounded like Raglan and Voisey Bay Nickel Mines.”
The Hawk Ridge Property
Hawk Ridge comprises of 411 claims covering 179 km2 over a 50km belt located on the Ungava Bay, located North of Kuujjuaq, with direct access to tidewater on the east coast of Quebec. The project is known for its Ni and Cu content, specifically:
The majority of the Hawk Ridge Property is subject to a 3% net smelter return royalty, of which one third (i.e. 1%) may be repurchased at any time for $1,000,000. Another 1% of the NSR is subject to a right of first refusal.
Terms of the Option Agreement
Phase One
1844 is entitled to acquire a 10% undivided interest in Hawk Ridge on the date that is two business days following the approval of the Option Agreement by the TSX Venture Exchange by paying $1,000,000 and issuing 1,000,000 common shares in the capital of the 1844 to NNX.
Phase Two
If 1844 exercises the First Option, it can acquire an additional 10% undivided interest in Hawk Ridge by paying $1,000,000 and issuing 1,000,000 Common Shares to NNX on the first anniversary of the Effective Date, and incurring $500,000 of exploration expenditures before the first anniversary of the Effective Date.
Phase Three
If 1844 exercises the Second Option, it can acquire an additional 20% undivided interest in Hawk Ridge by paying $1,000,000 and issuing 2,000,000 Common Shares to NNX on the second anniversary of the Effective Date, and incurring $500,000 of exploration expenditures before the second anniversary of the Effective Date.
Phase Four
If 1844 exercises the Third Option, it can acquire an additional 40% undivided interest in Hawk Ridge by paying $2,000,000 and issuing 3,000,000 Common Shares to NNX on the third anniversary of the Effective Date, and incurring $1,000,000 of exploration expenditures before the third anniversary of the Effective Date.
Phase Five
If 1844 exercises the Fourth Option, it can acquire an additional 20% undivided interest in Hawk Ridge by paying $1,000,000 and issuing 3,000,000 Common Shares to NNX on the fourth anniversary of the Effective Date, and incurring $1,000,000 of exploration expenditures before the fourth anniversary of the Effective Date.
Any exploration expenditure relating to an Option incurred by the Optionee following the Effective Date but prior to the deemed date of grant of such Option will constitute a valid exploration expenditure for the purposes of the applicable exploration expenditure requirement of such Option. Any excess exploration expenditure incurred by the Optionee in connection with the Second Option, Third Option or Fourth Option will be carried forward and credited to the exploration expenditure requirements of subsequent Options.
The completion of the transaction is subject to several conditions, including, but not limited to, the approval of the Exchange and all other necessary approvals including shareholder approval by NNX shareholders for the Fourth and Fifth Options. Pursuant to the terms of the Option Agreement NNX is required to receive lock-up and support agreements from shareholders holding not less than 60% of NNX’s common shares.
Neither the Exchange nor its Regulations Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Qualified Person
The technical information in this news release has been reviewed and approved by Tony Guo, P.Geo., Nickel North Exploration Corp’s President and CEO, who is a Qualified Person as defined by National Instrument 43-101.
About Nickel North Exploration
Nickel North Exploration is a Canada-based exploration company focused on defining a Cu-Ni-Co-PGE mineral resource at its Hawk Ridge Project in Northern Quebec. The board of directors, advisor committee and management team are experienced, successful mine finders. The property consists of a 50 km long belt of strong magmatic Cu-Ni-Co-PGE occurrences covering 179.67 km2. Quebec is a mining-friendly jurisdiction. Nickel North Exploration is a conscientious corporate citizen maintains good relations with local Inuit communities and is committed to sustainable development.
Nickel North Exploration Corp. has been identified as a key player in the Critical and Strategic Minerals value chain by Quebec’s Ministry of Economics and Innovation (MEI) in 2021 (Quebec Plan for the Development of Critical and Strategic Minerals 2020-2025 (quebec.ca), which is part of Quebec’s Plan for the Development of Critical and Strategic Metals (QPDCSM) and aims to stimulate the exploration and mining of SCMs, their transformation and recycling
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We acknowledge the [financial] support of the Government of Canada.