Nickel North Exploration Corp (TSX-V:NNX) told investors it has updated its option agreement to sell a 100% undivided interest in the Hawk Ridge nickel-copper project to 1844 Resources (TSX-V:EFF) Inc.
The project encompasses 411 mineral claims spanning 179 square kilometres in the Ungava Bay in northeastern Quebec.
The amended and restated option agreement outlines revised payment terms and conditions. Upon its execution, Nickel North received a non-refundable $15,000 cash deposit from 1844, with an additional $335,000 in cash and 5 million 1844 common shares payable to Nickel North upon TSX Venture Exchange approval.
The agreement allows 1844 to acquire a 20% undivided interest in the Hawk Ridge Project on the first anniversary by paying $350,000, issuing 4 million common shares, and incurring $500,000 in exploration expenditures before the anniversary. The option includes subsequent opportunities for 1844 to increase its stake up to 100% based on specific conditions and payments over the next five years.
However, failure to meet payment terms and conditions for each option results in the termination of the corresponding agreement, with 1844 relinquishing its acquired interests for nil consideration.
Nickel North Exploration is a Canada-based exploration company focused on defining a Cu-Ni-Co-PGE mineral resource at its Hawk Ridge Project in Northern Quebec.