en.Wedoany.com Reported - EV Nickel (TSX-V:EVNI) has signed a letter of intent with Pure North Resources to form a joint venture aimed at consolidating "high-grade" nickel deposits in the Shaw Dome area near Timmins, Ontario.
Under the agreement, EV Nickel will contribute its W4 nickel deposit and the Langmuir #2 former nickel-producing mine to obtain a 40% stake in the joint venture. Private company Pure North Resources will contribute the permitted Hart deposit mining lease (which includes a certified closure plan), along with assets from the Redstone former-producing mine and the McWatters former-producing mine. Pure North shareholders will hold a 60% interest in the joint venture.
The two companies stated that the equity structure was set taking into full account the relative differences among the assets in terms of project stage, existing and historical mineral resources, permitting status, infrastructure advantages, and exploration potential. Paul Davis, Vice President of Exploration at EV Nickel, called the joint venture an "important milestone" for the development of the Shaw Dome area.
Davis said: "The combined asset portfolio already hosts significant high-grade nickel mineralization in current and historical resources and reserves. By bringing these strategic deposits and former-producing mines under one entity, we have laid a solid foundation for achieving critical mass of high-grade nickel mineralization within the Shaw Dome. Importantly, all existing deposits remain open at depth and offer significant exploration upside."
The joint venture has set a conceptual exploration target of 6 to 10 million tonnes of ore at grades between 1.0% and 2.0% nickel. EV Nickel noted that these figures remain conceptual. Going forward, the joint venture plans to prepare an updated National Instrument 43-101 technical report covering the Hart deposit and selected deposits within the broader Shaw Dome asset portfolio, following completion of additional diamond drilling, data validation, and geological re-modeling.
EV Nickel has entered a two-month due diligence period, starting from the date of the letter of intent on June 17. Thereafter, the company will prepare a final shareholders' agreement after finalizing specific contribution terms. EV Nickel will also retain 100% ownership of its nickel projects outside the joint venture, including the CarLang A deposit and the Gemini North deposit. EV Nickel is a Canadian mining and exploration company focused on developing clean, low-carbon nickel for the North American electric vehicle market.
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