North American Nickel Congratulates PNR on Signing Definitive Asset Purchase Agreement to Acquire Assets in Botswana
North American Nickel Congratulates PNR on
Signing Definitive Asset Purchase Agreement
to Acquire Assets in Botswana
Vancouver, British Columbia--(Newsfile Corp. - September 28, 2021) -
North American Nickel Inc.
(TSXV: NAN) (OTCQB: WSCRF) (CUSIP: 65704T 108)
(the "
Company
" or "
NAN
") is pleased to
announce that Premium Nickel Resources ("
PNR
") has executed a definitive asset purchase agreement
("
APA
") with the Liquidator of BCL Limited ("
BCL
") to acquire the Selebi, and Selebi North (together the
"
Selebi Assets
") nickel-copper-cobalt ("
Ni-Cu-Co
") assets and related infrastructure formerly operated
by BCL. PNR has announced that they are now targeting the closing of this transaction, and transfer of
ownership of the assets, within 120 days.
PNR is also negotiating a separate asset purchase agreement
to finalize terms for any prioritized Tati Nickel Mining Corporation ("
TNMC
") assets that may be
purchased.
PNR submitted an indicative offer to the BCL and TNMC liquidators in June 2020 to acquire the assets
of the former producing BCL Mining Complex and separately the TNMC operations located in north-
eastern Botswana. On February 10, 2021, PNR was selected as the preferred bidder and on March 22,
2021, PNR entered into a memorandum of understanding providing for a six-month exclusivity period to
complete additional work and negotiate the asset purchase agreements (see news release dated March
24, 2021).
NAN CEO, Keith Morrison commented, "During the exclusivity period, NAN's team has continued to
support PNR in acquiring new information to support the economic feasibility of redeveloping a
combination of the former BCL assets. This agreement will separate the Selebi deposits from the
Phikwe mines and processing infrastructure. PNR will advance the redevelopment of the Selebi deposits
using an alternative beneficiation process to produce commercial concentrates of Ni-Cu-Co. This
business model will reduce the environmental impact of the processing, by using less power and less
water, while employing the use of advanced modern technologies to safeguard the environment and
minimize the carbon footprint. PNR will now complete additional exploration activities and drilling with the
ambition to fully characterize the size and grade of the remaining resource, and redevelop the Selebi
deposits as a leading environmental, social and corporate governance mining development project."
The Selebi Assets include two shafts and related infrastructure (rail, power and water). Shaft sinking and
plant construction started in 1970. Mining concluded in October 2016 when the operations were placed
on care and maintenance due to a failure in the processing facility. The redevelopment plan is based on
the re-characterization of the remaining resources and the ability to produce both a Cu concentrate and
a separate Ni-Co concentrate.
NAN maintains a 10% equity ownership position in PNR following their pro-rata participation in a recent
private placement financing (see news release dated August 26, 2021). NAN also holds a 5-year
Warrant effective as of February 26, 2020, to purchase an additional 15% undiluted equity interest in
PNR for USD$10M and is providing the corporate management and technical expertise to PNR on a
contractual basis.
There can be no assurance that PNR will move from exclusivity to successful completion of the proposed
acquisition.
About North American Nickel
North American Nickel is a mineral exploration company with 100% owned properties in Maniitsoq,
Greenland and Ontario, Canada. In 2019, the Company became a founding shareholder in Premium
Nickel Resources ("
PNR
") a private Canadian company, to provide direct exposure to Ni-Cu-Co
opportunities in the southern African region. PNR completed a Memorandum of Understanding to
acquire the assets, in liquidation, formerly operated by BCL Limited in Botswana. In addition, the
Company is expanding its area of exploration interest into Morocco and building a relationship with the
Office National des Hydrocarbures et des Mines ("
ONHYM
"), the leading resource crown corporation
and the single largest permit holder in Morocco.
The Maniitsoq property in Greenland is a Camp scale permitted exploration project comprising 3,048
square km covering numerous high-grade nickel-copper + cobalt sulphide occurrences associated with
norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is
situated along, and near, the southwest coast of Greenland and is accessible from the existing Seqi
deep water port with an all-year-round shipping season and hydroelectric power potential from a
quantified watershed.
The Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing
Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd. The property lies
along the extension of the Whistle Offset dyke structure. Such geological structures host major Ni-Cu-
PGM deposits and producing mines within the Sudbury Camp.
The Company acquired 100% ownership of property near the southern extent of the Lingman Lake
Greenstone Belt in northwest Ontario known as Lingman Nickel and in the Quetico region near Thunder
Bay Ontario. The acquisition of these properties is part of the Company's strategy to develop a pipeline
of new nickel projects. The Company is evaluating direct and indirect nickel asset acquisition
opportunities globally.
ON BEHALF OF THE BOARD OF DIRECTORS
Keith Morrison
Chief Executive Officer
North American Nickel Inc.
For more information contact:
North American Nickel Inc.
Jaclyn Ruptash
Corporate Communications
+1 (604) 770-4334
Neither 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
: This news
release includes certain "forward-looking statements" and "forward-looking information" under
applicable Canadian securities legislation concerning the business, operations and financial
performance and condition of the Company. Forward-looking statements and forward-looking
information include, but is not limited to, statements about the future prospects of any assets or
properties of the Company, the ability of the Company to successfully complete due diligence, the ability
of the Company to access capital, any spending commitments, the success of exploration activities, the
future economics of minerals including nickel and copper, the benefits of the development potential of
the properties of the Company, the benefits of drilling and advancement of projects. Forward-looking
information is necessarily based upon a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause
the actual results and future events to differ materially from those expressed or implied by such forward-
looking information. There can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and is based upon the opinions and
estimates of management and information available to management as at the date hereof. The
Company disclaims any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as required by law.
Although the Company has attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be anticipated, estimated or intended. Statements
concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the mineralization that will be encountered if the
property is developed.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/97938