First Atlantic Nickel (TSX-V:FAN) has received approval from the TSX Venture Exchange for the recently announced option agreement to acquire the Atlantis Project in Newfoundland.
Once inked, the deal will see First Atlantic emerge with an ‘undivided legal and beneficial interest’ in 13 mining licences consisting of 547 mineral claims covering 13,675 hectares located in northern Newfoundland.
The Atlantis Project is subject to a 2% net smelter return (NSR) royalty. First Atlantic retains the right to buy back half the royalty equal to 1% NSR for C$1 million ($1.076 million) at any time prior to the commencement of commercial production.
The shares are subject to a statutory hold period that will expire on 31 January 2025.
First Atlantic notes that the Atlantis Project benefits from “excellent” infrastructure, with Highway 430 and power lines running through the property claims.
The project is also located in northern Newfoundland near St Anthony, with an airport some 15km away.
First Atlantic plans to complete a detailed data compilation program and preliminary sampling and mapping to follow up on the highly elevated nickel samples.
The Atlantis Project covers a large ultramafic complex of potential mantle source, known as the St Anthony Complex and White Hills Peridotite. The White Hills Peridotite and its underlying metamorphic rocks represent the basal portion of a partly eroded ophiolitic complex.
The project consists of two ultramafic masses characterised by serpentinised peridotites, suggesting the potential for another large-scale ultramafic nickel system.
Minimal historic work has been completed on the property, with notable assays reported by Cooper in 1937, including 54.05% chromium (Cr2O3) at Long Pond and 0.37% nickel at Southwest Direction Mountain.
Write to Adam Orlando at Mining.com.au
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