SPC Nickel Corp (TSX-V:SPC, OTC:SPCNF) said it has entered into an option agreement with Bathurst Metals Corp, giving it the right to acquire a 100% interest in the McGregor Lake and Speers Lake properties located within the Kitikmeot Region of western Nunavut.
After the deal, SPC Nickel will control nearly 650 square kilometers of the highly prospective Muskox Intrusion, representing one of the last remaining camp scale nickel-copper-platinum group metal (PGM) opportunities in North America.
"This strategic transaction provides SPC Nickel with a path to consolidate the highly prospective Muskox Intrusion,” CEO Grant Mourre said in a statement. “...The Muskox Intrusion is comparable in size, composition and interpreted geological environment to many of the world's largest Ni-Cu-PGM deposits such as Norilsk in Siberia and Voisey's Bay, in Newfoundland and Labrador. This fact, coupled with the numerous high-grade sulphide showings indicate the intrusion has excellent potential to host a world class deposit.”
To acquire 100% interest, SPC Nickel will be required to issue 7.5 million common shares and pay $1.35 million in cash over three years. If it does, Bathurst will retain a 1% net smelter return royalty (the NSR) on the property with SPC Nickel retaining the right to buy back 0.5% NSR for $5 million up to the time of commercial production.
If SPC Nickel exercises its option and earns a 100% undivided legal and beneficial interest in the property (subject to the NSR), SPC Nickel shall pay Bathurst $5 million within twelve months of the commencement of commercial production, the company said.
Mourre emphasized that the company will balance its focus on the Muskox intrusion-based McGregor and Speers Lake properties, on which the company says it holds a great deal of geophysical data, with its Sudbury-based assets.
“Our focus and commitment to our Sudbury based assets, specifically our recently consolidated West Graham Property, remains our top priority with our Phase 1 drill campaign progressing well,” Mourre said. “By using our proprietary database, the technical team will continue to advance our understanding of the Muskox Intrusion while also generating exciting new base and precious metals targets as SPC Nickel develops a strategy to advance this project towards a significant discovery."
The McGregor Lake and Speers Lake properties cover approximately 178.4 square kilometers of the southern exposure of the Proterozoic aged, Muskox Intrusive in western Nunavut.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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