Cornish Metals Inc. has announced the sale of its 100% interest in the Nickel King and Opescal Lake properties to Northera Resources Ltd. for up to C$8 million. The sale aligns with the company's objective to focus on advancing its 100% owned and fully permitted South Crofty tin project in the UK. Cornish Metals will retain exposure to any future exploration success at Nickel King as Northera works to recommence exploration activities at the property, which comprises approximately 4,000 hectares in mining leases and mineral claims in Canada's Northwest Territories.
Under the terms of the agreement, Northera will make non-refundable cash payments to Cornish Metals and issue common shares in the capital of Northera to the company upon completion of a go public transaction. The Nickel King Property, located in the Northwest Territories, hosts the Nickel King Nickel-Copper-Cobalt (Ni-Cu-Co) deposit, with an NI 43-101 compliant geological resource model indicating significant mineralization.
Cornish Metals is a dual-listed mineral exploration and development company focused on advancing the South Crofty high-grade, underground tin project in Cornwall, United Kingdom. The South Crofty mine, with over 400 years of continuous production, possesses Planning Permission for underground mining, construction of new processing facilities, and all necessary site infrastructure. The 2024 Preliminary Economic Assessment for South Crofty validates the project's potential, with a US$201 million after-tax NPV8% and 29.8% IRR, among other positive indicators.
Tin, a Critical Mineral as defined by the UK, American, and Canadian governments, is a key component in electronic and electrical infrastructure, making responsible sourcing of critical minerals and security of supply crucial in the energy transition and technology growth. South Crofty benefits from strong local community, regional, and national government support and could generate up to 320 direct jobs. However, the 2024 Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.