Tartisan Nickel Corp. has announced that it has closed the grant to Electric Royalties Ltd. (“ELEC or Electric Royalties”), a 0.5% gross revenue royalty (“GRR”) on six mining patents located on the wholly-owned Kenbridge Nickel Project, Kenora Mining District, Ontario, Canada.
Financial terms for the transaction included cash consideration of C$500,000 and 2,500,000 common shares of Electric Royalties Ltd., (the “Transaction”). The approximate market value of the transaction was C$1,350,000. Electric Royalties will also have the option, for a period of 18 months, to acquire a further 0.5% GRR on the six mining patents for an additional C$1,750,000 cash consideration. In addition, Electric Royalties will have an option to acquire a 1% GRR on certain mining claims, mining leases and mineral tenures comprising the Kenbridge North Nickel Project (the “Kenbridge North Project” or “Kenbridge North”), approximately 2.5 km north of the Kenbridge Nickel Deposit, for C$1,000,000 cash, at any time during a period of 24 months from the date that Tartisan publishes an initial technical report in respect of the Kenbridge North Project which is prepared in accordance with National Instrument 43-101 and which contains an estimate of Inferred Mineral Resources.
The Transaction noted herein was subject to completion of due diligence, approval of the TSX Venture Exchange and other customary conditions including an escrow agreement pertaining to the “ELEC” common share consideration.
Kenbridge Project Highlights
- Located in a politically stable and mining-friendly region (New Gold’s producing Rainy River gold mine is located approximately 80 km to the south), with access to an all-season road scheduled for completion in 2023.
- The project has a 622-meter (m) three compartment shaft with two underground level workstations and has never been mined.
- Mineral Resource estimate1 completed by P&E Mining Consultants Inc. at an NSR cut-off of C$100/tonne includes:
- Measured and Indicated Mineral Resources of 3.445 million tonnes at 0.97% nickel (Ni), 0.52% copper (Cu) and 0.013% cobalt (Co), containing 74 million pounds (Mlb) of Ni, 39.1 Mlb of Cu and 1.0 Mlb of cobalt (Co).
- Inferred Mineral Resources of 1.014 million tonnes at 1.47% Ni, 0.67% Cu and 0.011% Co, containing 32.7 Mlb of Ni, 14.9 Mlb of Cu and 0.2 Mlb of Co.
The PEA is considered preliminary in nature, contains numerous assumptions, and includes Inferred Mineral Resources that are considered too speculative, geologically, to have the economic considerations applied that would enable them to be classified as Mineral Reserves. There is no certainty that the results of the PEA (or any update thereto) will be realized. No Mineral Reserves have been estimated for Kenbridge. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are that part of the Mineral Resource for which quantity and grade, or quality are estimated based on limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred Mineral Resources may not be converted to Mineral Reserves. It is reasonably expected, though not guaranteed, that most Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
Kenbridge Project Overview
The Kenbridge Project is in northwestern Ontario, approximately 70 km east-southeast of the city of Kenora, and 50 km east of the township of Sioux Narrows by highway. Access to the property is via 23 km of road from Sioux Narrows. The project is in an area of historical and recent mine development, the most notable of which is New Gold’s Rainy River gold mine.