Nickel Rock Resources Announces Flow Through Financing and Corporate Update
Nickel Rock Resources Announces Flow Through Financing
and Corporate Update
December 14, 2020: Vancouver, British Columbia; Nickel Rock Resources Inc. (“the
Company”) TSX-V: NICL, OTCQB: SSMLF is pleased to announce that planning for our 2021
exploration programs is underway and to fund these programs we are pleased to announce that we
have arranged a flow-through non-brokered private placement offering of 4,000,000 flow-through
units (FT Units”) at $0.13 per FT Unit raising gross proceeds of $520,000. Details of the exploration
program will be outlined in a NI 43-101 report soon to be released.
Each FT Unit is comprised of one common share and one share purchase warrant (“Warrant”).
Each Warrant will entitle the holder thereof to purchase one additional common share of the
Company at an exercise price of $0.15 per share for a period of two years from closing, subject to
TSX Venture Exchange (“Exchange”) approval.
Finder’s fees will be issued in connection with the private placement and are subject to Exchange
approval. All securities issued will be subject to a four month and a day hold period under applicable
Securities Laws.
Corporate Update
From March of this year, the Company has been continually active and has accomplished a lot during
a time of global uncertainty caused by the COVID-19 global pandemic. This progress has positioned
the Company for a bright and successful future.
Most recently, the Company has been completely rebranded as Nickel Rock Resources to reinforce
our plans for exploring and developing great nickel assets. To facilitate this plan the Company
completed an equity financing totalling $1,000,000 and successfully acquired a 100% interest in
several highly prospective claims which include the Hard Nickel Centre Group(which includes the
Klone claim group), Hard Nickel 3, Hard Nickel 4 and the Nickel 100 claim group. The acquisition of
the Hard Nickel Group and the Nickel 100 claims are subject to Exchange approval. The properties
are located near Canada’s prolific Omineca mining district 100kms northwest of Fort St James, British
Columbia. Nearby is the prolific Mt. Milligan mine owned and operated by Centerra. The area is very
prospective for nickel-based mineral deposits as can be demonstrated by the recently announced
Baptiste Nickel Deposit owned by FPX Minerals. Also, a key part of the rebranding of Nickel Rock, is
the launch of our new website ( http://www.nickelrockresources.com/) and a soon to be launched
social media campaign.
The Nickel Rock Resources mineral claims are partially underlain by rocks like those hosting the
Decar project of FPX Nickel where mineralization includes nickel, cobalt, and chromium. At least
some of the nickel mineralization occurs as awaruite which is a naturally occurring nickel-iron alloy
important in the manufacture of environmentally efficient batteries for the electric vehicle markets
globally. The mineral awaruite is both highly magnetic and very dense and is therefore amenable to
concentration by mechanical processes including magnetic and gravity separation. This style of
deposit is unique and presents considerable metallurgical and processing cost saving advantages.
Nickel Rock Resources Inc.
1220 – 789 West Pender Street
Vancouver, BC, Canada V6C 1H2
604- 428-5690
www.nickelrockresources.com
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Significantly, the awaruite found is found in a serpentinized ultramafic rock. In 2018, G. Dipple at the
University of British Columbia began the Geoscience BC funded research project “Carbon
Mineralization Potential Assessment for BC” scheduled for completion in early 2021. In late 2020 a
preliminary assessment report was published. One of the key items from the report was “The use of
reactive serpentinite tailings from nickel mining as a carbon sink has the potential to make nickel
mining carbon neutral or a net carbon sink.” The presence of serpentinized ultramafic rocks has been
repeatedly documented in the areas covered by the claims of the Nickel Rock Projects, as well as at
FPX Nickel Corp.’s Decar Project (Dipple, G. et.al., Geoscience BC Report 2020-15). The funds to be
received from our flow through financing are earmarked for detailed exploration programs on our
two very prospective nickel projects in British Columbia and will start as soon as weather permits.
As most readers are aware, nickel is essential for the manufacture of countless products that we rely
on daily including being a principal component used in the manufacture of Electric Vehicle (“EV”)
Batteries. The battery market only consumes three percent (3%) of the world’s available nickel but
that figure is set to grow substantially. Some projections are forecasting that by 2025 there will be
more that 140 million EV’s on the road, and by 2030 that number could double as the industry is
leaning towards batteries with a higher nickel concentration as they tend to last longer. This makes
EV’s a more attractive option to consumers and acts as an incentive to make the transition.
The Company has seen the commodity spot price for nickel to be in a steady uptrend while world
stockpiles have been on the decline and EV manufacturers are calling for more supply of nickel
because nickel quantities are increasing in batteries as they increase the amount of charge a battery
can hold, thus allowing the EV’s to travel greater distances. One such company is Tesla Inc. (NASDAQ:
TSLA), the world’s leading EV manufacturer. Tesla’s Founder, Elon Musk, stated that a very large
contract would be signed if a company could produce nickel with a lowered carbon footprint by using
more environmentally friendly ways of mining. His comments made waves in the nickel space and
several juniors have benefited from his comments and surged 2 to 3 times their value.
In addition to our nickel exploration properties in Canada, the Company also has 100% title to 77
lithium placer claims covering over 640 hectares in Clayton Valley, Nevada, which until recently has
been home to North America’s only producing lithium mine. The Company’s Clayton Valley Project
is an early-stage lithium brine prospect in Esmeralda County, Nevada. Plans are being drawn up for
an exploration program early in 2021 to begin exploration on this well-located mineral project.
Located contiguous and adjacent to Nickel Rock Resource’s Clayton Valley Project, the Silver Peak
Lithium Brine Mine and Processing Facility has been in production since 1966 using traditional
evaporation pond technology and has been until this year been the only producing lithium brine
deposit in North America. Albemarle Corporation (NYSE: ALB) purchased the mine as part of its
acquisition of Rockwood Lithium that closed in early 2015. The United States Geological Survey
estimates that over 300 million pounds of lithium carbonate have been produced at this facility since
1966.
In addition to adding working capital and adding several new 100% owned mineral assets, since the
beginning of this year, Nickel Rock has added several experienced people to our advisory team which
will assist the Company on all our mineral exploration properties. We look to add to both our
management team and board over the remainder of calendar 2021.
Both in the near-term and long-term, the Company believes the market for nickel and lithium will
remain strong and we look forward to exploring and developing our mineral exploration projects in
North America. The future for nickel and lithium is certainly bright and Nickel Rock management is
extremely positive.
We are pleased that our shareholders support our company and our exploration programs in Canada.
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Thank you for joining us on this journey, and we look forward to a great 2021.
Qualified Person
Jacques Houle, P.Eng., a qualified person as defined by NI 43 - 101, is responsible for the technical
information contained in this release. All scientific and technical information in this press release has
been prepared under the supervision of Jacques Houle, P. Eng, a consultant and a qualified person
within the meaning of National Instrument 43-101. Readers are cautioned that the information in
this press release regarding the property of FPX Nickel Corp is not necessarily indicative of the
mineralization on the property of interest. The QP has been unable to verify the information in this
press release about the Decar property, (such information was publicly disclosed in their PEA dated
Sept. 9, 2020) and the QP believes it is reliable.
About Nickel Rock Resources Inc.
The Company is a Canadian-based mineral exploration company which has been active in the
resource sector in British Columbia and elsewhere in Canada. Nickel Rock Resources Inc. is a
Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The
Company’s maintains a focus on exploration for high value battery metals required for the electric
vehicle (EV) market. The Company recently announced several acquisitions resulting in a significant
property package prospective for awaruite, a naturally occurring nickel-iron alloy important in the
manufacture of environmentally efficient batteries for the electric vehicle markets globally.
On Behalf of the Board of Directors
“Robert Setter”
Robert Setter, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release
may contain forward-looking statements which include, but are not limited to, comments that involve future
events and conditions, which are subject to various risks and uncertainties. Except for statements of historical
facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking
statements are not guarantees of future performance and actual results may vary materially from those
statements. General business conditions are factors that could cause actual results to vary materially from
forward-looking statements.