First Atlantic Nickel (TSX-V:FAN) has closed a two-stage earn-in agreement with Core Critical Metals (TSX-V:CCMC) to acquire up to 80% of the Lucky Mike Copper-Silver-Tungsten Project in Canada.
As part of the deal, Core spent C$16 million ($16.26 million) in exploration expenditure and must also make a cash or share payment totalling C$650,000 to First Atlantic.
First Atlantic retains a 20% participating interest and will be carried until the delivery of a Feasibility Study on the project.
Both companies will enter into a joint venture agreement, in which both companies will be responsible for their own pro-rata share of expenditures approved in the annual works program and budget for the project, with Core acting as the operator.
In connection with the transaction, First Atlantic plans to establish a special committee of independent directors to evaluate strategic alternatives with respect to the company’s potential remaining 20% interest.
The Lucky Mike Property is a large district-scale copper-silver-tungsten project in Southern British Columbia comprising 37 claims totalling approximately 7,675 hectares.
First Atlantic Nickel is a mineral explorer focused on discoveries in Newfoundland and Labrador.
Write to Aaliyah Rogan at Mining.com.au
Images: First Atlantic Nickel
