Nexcel Metals (CSE:NEXX) has entered into a purchase agreement to acquire an additional 42% interest in the Burnt Hill Tungsten Project in New Brunswick, Canada.
The company currently owns a 29.58% interest and has the option to earn up to an additional 28.42% from Cadillac Ventures (TSX-V:CDC.H). Upon completion of the deal, Nexcel will own 71.58% of Burnt Hill.
As part of the agreement, Nexcel will issue 3.9 million shares and 5 million non-transferable common share purchase warrants exercisable at C$0.70 within three years.
The closing of the acquisition is subject to satisfying customary conditions including securing exchange approval.
Nexcel Metals is a junior mining company engaged in acquiring, exploring, and developing mineral properties. The company is currently focused on the Lac Ducharme Project located in Québec and the Burnt Hill Project.
Write to Aaliyah Rogan at Mining.com.au
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