Canada Nickel (TSXV: CNC) has announced an initiative to consolidate and propel its exploration properties located northeast of Timmins, Ontario, with the creation of a new subsidiary. This involves merging its ventures with Noble Mineral Exploration to form a privately owned entity named ExploreCo, with Canada Nickel holding an 80% stake and Noble the remaining 20%.
Canada Nickel and Noble will contribute certain mining properties, including the existing Mann joint venture. The consolidation extends to include strategic mining and surface rights essential for advancing the Crawford nickel sulphide project and other nearby prospects.
“Today is the first of a set of transactions designed to unlock value from our significant asset portfolio. The creation of ExploreCo will facilitate the ability to realize the future value of these properties that are not currently recognized in Canada Nickel’s market value.,” Mark Selby, CEO of Canada Nickel, said.
“This transaction also allows the company to consolidate the surface rights, remaining claims, and patents around the Crawford nickel sulphide project to simplify the development of Crawford and our future projects,” he added.
Led by Steve Balch, Canada Nickel’s current VP of exploration, ExploreCo will initially oversee 1,989 mining claims spread across approximately 420 sq. km. The subsidiary aims to potentially pursue a public listing, contingent on market conditions.
Funding for ExploreCo’s initial phase will be seeded with C$5 million from Canada Nickel’s existing funds, with subsequent costs shared based on ownership stakes. Both companies will retain existing royalty rights on ExploreCo’s claims, ensuring continuity in their respective interests.
