Spruce Ridge Resources Ltd. agreed to sell its interest in the Crawford nickel-cobalt sulfide project in Ontario to new Noble Mineral Exploration Inc. unit Canada Nickel Co., which will consolidate 100% interest in the project.
The company said Oct. 1 it will retain its interest in various VMS targets in Crawford Township.
In a same-day release, Noble said it will create Canada Nickel, qualify it as a new public entity, and distribute a significant portion of its interest in the new unit to shareholders.
Noble will receive 12 million common shares of Canada Nickel valued at C$3 million and C$2 million in cash, and will distribute 10 million shares to its shareholders.
Spruce Ridge will surrender its joint venture interest in the Crawford project for C$1 million cash from Noble and 20 million from shares from Canada Nickel valued at C$5 million.
Noble will also issue 10 million units to Spruce Ridge at 9 Canadian cents valued at C$900,000.
Meanwhile, Spruce Ridge will issue 2 million shares to Noble valued at C$130,000 as consideration for the previous Crawford joint venture agreement, which will be terminated. In exchange, Noble will transfer certain assets to Spruce, subject to 25% earn-in rights.
Investors in the Crawford joint venture will also relinquish their interest when Spruce Ridge issues 10 million shares of Canada Nickel valued at C$2.5 million, and 10 million of its own units valued at C$650,000.
Noble will also complete a fully-subscribed C$5 million private placement into Canada Nickel to fund the cost of the Crawford project consolidation and to advance exploration and mineralogical work.
Canada Nickel will be led by Mark Selby as chairman and CEO. Selby was most recently President & CEO of RNC Minerals.
Consolidation of the Crawford properties is expected by Oct. 31, qualification of Canada Nickel as a public entity is expected by Dec. 31.
