Noble Mineral Exploration Inc. (TSX-V:NOB, FRANKFURT: NB7, OTCQB:NLPXF) announced today that it has entered into a binding Letter of Intent to acquire the Lucas Gold Project from Canada Nickel Company Inc. (CNC). The transaction underscores Noble's strategy to consolidate gold exploration assets in the Timmins region of Ontario, one of the world's most prolific gold-producing areas with over 75 million ounces of historical production.
Under the terms of the agreement, Noble will issue 5,000,000 units to CNC, with each unit valued at $0.06 and consisting of one common share and one-half of a non-transferable common share purchase warrant. Each full warrant entitles CNC to purchase one common share at $0.15 for two years. Additionally, CNC retains a back-in right to acquire a 25% interest in the property after a trigger date, defined as the earlier of 36 months from closing, $5 million in exploration expenditures, or a change of control of Noble. The back-in right would require CNC to pay Noble four times the exploration expenditures incurred.
The Lucas Gold Project is located approximately 30 km north of Timmins and 20 km northeast of the world-class Kidd Creek Mine, which has produced over 150 million tonnes of ore in 58 years of continuous operation. It is also about 20 km east of Canada Nickel's Crawford Nickel Resource. The project is drill-ready with access via paved Highway 655, proximity to power and water, and a Memorandum of Understanding with local First Nations.
Previous exploration by Noble in 2018 included 15 diamond drill holes totaling 3,184 meters, covering approximately 650 meters of a 1,700-meter gold mineralized structure. The program identified 37 historical drill collars and twinned three historical holes. Gold mineralization is structurally controlled, occurring as discrete lenses within a pyrite-gold mineralized tuffaceous unit. However, only one of six discrete IP anomalous trends has been drill-tested, leaving significant upside potential.
Vance White, President and CEO of Noble, stated: "We are very pleased to be proceeding with the repurchase of an excellent gold prospect on which we know from past work carried out by Noble of an existing gold zone but also a number of untested parallel zones." The company plans to conduct further drilling on the initial IP anomaly and test the five undrilled anomalies to expand the gold mineralization footprint.
The transaction remains subject to negotiation of a definitive agreement and approvals from the TSX Venture Exchange. Noble also holds interests in other properties, including ~70,000 hectares in Northern Ontario and ~25,000 hectares in Quebec, with diversified drill-ready targets for gold, nickel-cobalt, and base metals. The company's common shares trade under the symbol "NOB" on the TSX Venture Exchange.
Qualified persons Stephen J. Balch, P.Geo., of CNC, and Wayne Holmstead, P.Geo., of Noble, have reviewed and approved the technical information in this release. The company cautions that forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations.
