Canada Nickel and Noble Mineral Exploration Launch ExploreCo to Consolidate Ontario Nickel Assets
In a strategic move to streamline their nickel exploration and development efforts in Ontario, Canada Nickel Company and Noble Mineral Exploration have joined forces to create a new subsidiary named ExploreCo. This initiative is set in motion through a binding letter of intent (LOI), marking a significant step towards consolidating their nickel project interests located northeast of Timmins, Ontario.
Under this partnership, Canada Nickel will secure an 80% stake in ExploreCo, with Noble holding the remaining 20%. This collaboration is set to bring under one umbrella the mining rights and access to surface rights for crucial patents in the townships of Aubin, Crawford, Carnegie, Dargavel, Kidd, Lennox, Lucas, Nesbitt, Prosser, and Wark, all of which are presently under Noble’s portfolio.
The establishment of ExploreCo is poised to optimize the path towards the development of the Crawford project, as well as other regional properties owned by Canada Nickel. Directed by Steve Balch, Canada Nickel Exploration’s vice-president, ExploreCo will spearhead the management of 1,989 mining claims covering an expansive area of roughly 42,000 hectares. This includes nickel properties across Mann, Newmarket, and Reaume Townships, along with Calder, Galna, McCool, Moody, Mortimer, Stimson, and numerous other sites currently managed by Canada Nickel.
With a commitment to bolster the operations and support systems of ExploreCo, Canada Nickel will extend its expertise in providing necessary administrative and technical assistance. An initial funding of $5 million (C$6.82 million) from Canada Nickel’s reserves will kickstart the subsidiary’s activities. Future expenses will be proportionately covered by both companies, aligning with their respective ownership stakes of 80% for Canada Nickel and 20% for Noble.
Furthermore, the two founding companies will maintain their existing royalty rights on the ExploreCo claims, preserving the rights of previous claim owners who sold their claims to Noble. In the governance framework of ExploreCo, Noble is entitled to nominate one director to the board, whilst Canada Nickel will appoint two directors. The board’s composition will be rounded out with two additional directors, selected through mutual agreement between both parties.
The prospect of ExploreCo pursuing a public listing is on the horizon, contingent upon favorable market conditions. This strategic maneuver is envisioned to enhance the market value and visibility of the consortium’s nickel properties, which were previously underrecognized under Canada Nickel’s standalone value.
Canada Nickel’s CEO, Mark Selby, articulates the essence of this joint venture: “Today marks the commencement of a series of transactions aimed at unlocking value from our substantial asset portfolio. By creating ExploreCo, we facilitate the realisation of future value from these properties that our market value has not yet captured. Moreover, this transaction simplifies the development pathway for the Crawford Nickel Sulphide Project and our upcoming projects by consolidating the necessary surface rights, claims, and patents.”
This collaborative venture between Canada Nickel and Noble signifies a forward-thinking approach to refining the exploration and development landscape for nickel in Ontario, setting a precedent for future projects in the region.
