EV Nickel (TSX-V:EVNI) has signed a letter of intent (LOI) to form a joint venture (JV) to consolidate ‘high-grade’ nickel deposits in Ontario’s Shaw Dome district near Timmins.
Under the agreement, EV Nickel will contribute its W4 Nickel Deposit and the formerly producing Langmuir #2 Nickel Mine Zone to secure a 40% equity ownership in the JV.
Private company Pure North Resources will contribute the permitted Hart Deposit mining lease, which features a certified closure plan; and the formerly producing Redstone Mine and McWatters Mine properties.
Pure North shareholders will retain a 60% stake in the combined assets.
The companies say the ownership structure reflects the relative project status, current and historical mineral resources, permitting status, infrastructure advantages, and exploration upside of the contributing assets.
EV Nickel VP of Exploration Paul Davis says the JV represents a “significant milestone” in the development of the Shaw Dome district.
“The combined asset portfolio already hosts significant high-grade nickel mineralisation in current and historical resources and reserves,” Davis says.
“By bringing together these strategic deposits and former producing mines under a single entity, we have established a strong foundation to advance toward our objective of defining a critical mass of high-grade nickel mineralisation within the Shaw Dome.
“Importantly, all of the current deposits remain open at depth and offer significant exploration potential.”
The JV has established an exploration target of 6 million to 10 million tonnes of mineralisation grading between 1.0% and 2.0% nickel, with EV Nickel noting that the figures are still conceptual in nature.
Moving forward, the JV intends to complete an updated National Instrument 43-101 Technical Report, which will incorporate the Hart deposit alongside selected deposits from the broader Shaw Dome portfolio following additional diamond drilling, data verification, and geological re-modelling.
EV Nickel has entered a two-month due diligence period starting from the LOI execution date on 17 June. The company will then prepare a definitive shareholders agreement upon finalising the exact vend-in terms.
It will also retain 100% ownership of its nickel projects outside of the JV, including the CarLang A and Gemini North deposits.
EV Nickel is a Canadian mining and exploration company focused on developing clean, low-carbon nickel for the North American electric vehicle market.
Write to Paula Fabe at Mining.com.au
Images: EV Nickel
