Cornish Metals Inc plans to sell its Canadian nickel-copper-cobalt properties for C$8 million in cash and shares to focus on the South Crofty tin project in Cornwall.
EXPOSURE
Nickel King and Opescal Lake, comprising 4,000 hectares in mining leases and mineral claims in the Northwest Territories, are located 135km northeast of Stony Rapids, Saskatchewan.
The Canadian company has entered into a binding letter of intent with Northera Resources Ltd who will pay C$100,000 cash within five days of signing the agreement.
Within 95 days and on transfer of the legal and beneficial title to the mining leases and mineral claims, Northera will pay a non-refundable C$900,000 in cash.
Cornish Metals said that on completion of the agreement, it would receive Northera shares of an aggregate value of C$7m, giving it a maximum 19.99% holding in Northera.
Interim chief executive Ken Armstrong added: “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 towards a construction decision.
“Cornish Metals will retain exposure to any future exploration success at Nickel King, as Northera works to recommence exploration activities.”