Toronto, Ontario–(Newsfile Corp. – May 6, 2019) – Pure Nickel Inc. (TSXV: NIC) (the “Company” or “Pure Nickel”) announces that it has commenced work on generating a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) Technical Report (the “Technical Report”) for the Neal Project. The Company is Eric Sprott’s 51% partner in the Neal Development Limited Partnership (“Neal LP”) which holds a lease to operate the Neal Project (see Pure Nickel press release dated April 30, 2019). The Neal Project, located 27 kilometers southeast of Bosie, Idaho, is a gold project comprised of 5 patented and 7 unpatented lode mining claims.
To prepare the Technical Report, the Company has retained the services of Thomas H. Chadwick, BSc., CPG., an economic geologist specializing in precious and base metal exploration since 1976. In addition to the production of the Technical Report, the work will include a site visit, a compilation of historic work, an outline of the most encouraging zones and recommendations for future work programs. The Company expects the report to be completed and filed within the next few weeks.
About the Neal Project
The Neal Project is a high-grade gold-dominant discrete vein system with at least five veins known to date. It is located near Boise, Idaho and has excellent access via 20 kilometers of improved gravel and dirt roads from Interstate-84. The Project consists of 5 private patented mining claims covering approximately 22.4 hectares (55.38 acres) and another 7 unpatented lode claims covering about 52.6 hectares (130 acres) located on Forest Service administered public lands.
About the Neal LP and Sprott Mining Partnership
On April 29, 2019 Pure Nickel signed an Agreement (“Agreement”) to acquire an operating and controlling interest in the Neal LP. Under terms of the Agreement the Company can acquire 51% of the Neal LP from a company controlled by Eric Sprott (“Sprott Mining:”) 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. In addition, the Company has an earn-in option to acquire an additional 27% of the Neal LP, along with 7 unpatented mining claims by raising between US$1-1.5 million for an exploration drilling program. Upon completion of this future financing, Pure Nickel has the option to pay Sprott Mining $84,706 to exercise its option to acquire the remaining 27%. Upon completion of this earn-in option, Pure Nickel will own 78% of Neal LP, Sprott Mining will retain 20% and a separate party will continue to hold the remaining 2%. The transaction is subject to TSX Venture approval and is more fully outlined in the Company’s press release dated April 30, 2019.
About Pure Nickel
Pure Nickel is a mineral exploration and development company. With the acquisition of a controlling and operating interest in the Neal Project in Idaho, the Company has made the first key strategic step to expand its focus from nickel to include gold and silver exploration and development,
The technical information contained in this news release has been reviewed and approved by Thomas H. Chadwick, BSc., CPG, a Qualified Person under National Instrument 43-101 Disclosure Standards for Mineral Projects.
Forward Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Pure Nickel are forward-looking statements that involve various risks. The following are important factors that could cause Pure Nickel’s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Pure Nickel undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44559