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Pure Nickel Becomes Eric Sprott's 51% Partner on the Neal Project
Toronto, Ontario--(Newsfile Corp. - April 30, 2019) - Pure Nickel Inc. (TSXV: NIC) (the "Compa...
About this update from Galleon Gold Corp
[{"type":"text","content":"Pure Nickel Becomes Eric Sprott's 51% Partner on the Neal ProjectToronto, Ontario--(Newsfile Corp. - April 30, 2019) - Pure Nickel Inc. (TSXV: NIC) (the \"Company\" or \"Pure Nickel\") announces that it has signed an Agreement (the \"Agreement\") with 2176423 Ontario Ltd., a company controlled by Eric Sprott (\"Sprott Mining\") outlining the arm's length terms for the acquisition by the Company of an initial 51% of the Neal Development Limited Partnership (\"Neal LP\") from Sprott Mining together with an option to acquire an additional 27% of the Neal LP and 7 unpatented mining claims. The Neal LP holds a lease to operate the Neal Project, which is a gold project comprised of 5 patented and 7 unpatented lode mining claims located 27 kilometers southeast of Boise, Idaho.There are currently 200 outstanding limited partnership units in Neal LP of which Sprott Mining owns 142 units and has the option to acquire another 54 units (total of 196 units or 98% of the units). Four units are held by a separate party. All dollar figures in the release are US$.Under terms of the Agreement Pure Nickel would:Acquire 102 units of Neal LP (51%) in consideration of the issuance to Sprott Mining of 10,221,731 shares of the Company or approximately 15% of the currently issued and outstanding shares of the Company. Upon completion of the share issuance, Pure Nickel will become the operator of the Neal Project.Have an earn-in option to acquire an additional 54 units (27%) of Neal LP and 7 unpatented mining claims by raising between $1-$1.5 million for an exploration drill program. Upon completion of this future financing, Pure Nickel has the option to pay Sprott Mining $84,706 ($1,568.63 per unit) causing Sprott Mining to exercise its option to acquire the remaining 54 units and assign them to the Company, it will also transfer its interest in the 7 unpatented mining claims to the Company. Upon completion of this earn-in option, Pure Nickel will own 156 units or 78% of Neal LP, while Sprott Mining will retain 40 units or 20%. A separate party will continue to hold the remaining 4 units or 2%.The Neal LP currently leases the core patented private property at the Neal Project from Daisy Mining & Land, LLP, and the underlying claim holders. Under the lease agreement, Neal LP may remove, extract, ship and sell all ores, minerals and material from the ...