Canada Nickel Corp (TSXV: CNC) is apparently buying up more property in the Timmins district, although the firm isn’t disclosing where specifically. Notably, the firm also issued a series of corrections on prior property purchases.
The details, or lack thereof, were included at the tail end of an announcement made this morning by the company related to its latest metallurgical testing results. In terms of additional properties, the company is acquiring four properties in the Timmins region.
The four properties reportedly have been acquired for total consideration of $125,500 in cash and 221,000 shares, which is to be paid out over a period of two years. The shares are valued at approximately $0.6 million based on the most recent closing price of the company.
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NSR’s included on the property range from 1% to 2%, with half of the NSR’s able to be repurchased for figures between $0.5 and $1.0 million. It is entirely unclear what properties these purchases relate to, how large they are, where they are in relation to the firms other properties, or simply, what prospects they offer the company.
This is not the first time the company has lacked proper disclosures evidently however, with the company also issuing a correction this morning in relation to a November announcement wherein it acquired thirteen new properties in the Timmins district. Commenting on this, the firm stated, “that it previously entered into a purchase agreement to acquire certain mining claims located in additional townships in the Timmins, Ontario nickel-sulphide mining district, which was not specifically disclosed.” Further clarification on this was not provided, leaving the vague statement as the “correction” for investors.
The company also stated that it incorrectly stated 115,000 shares were issued for one property, when in fact it should have been 110,000 shares, with up to $15,000 and 25,000 in shares may be provided based on certain royalty targets.
Effectively, the firm made such vague corrections that the information is utterly useless, while demonstrating it has had disclosure issues as of late.
As for the latest metallurgical tests, Canada Nickel reportedly saw total nickel recovery of 63% from low nickel feed grade of just 0.19% nickel. The firm also saw a nickel sulphide concentrate grade of 46% nickel from the tests.
Canada Nickel last traded at $2.85 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
