Canada Nickel announced that it entered into a binding letter of intent with Noble Mineral Exploration to sell the Lucas Gold Project to Noble. The agreement was signed on July 13, 2026.
The transaction is intended to help Canada Nickel generate value from a non-core property while allowing Noble to advance exploration activities at Lucas. The deal remains subject to the negotiation of a definitive agreement, compliance with legal requirements, and any requirements of the TSX Venture Exchange.
Under the proposed Lucas transaction, Noble will issue 5 million units to Canada Nickel, with the units valued at $0.06 per unit. Each unit will consist of one common share and one-half of one non-transferable common share purchase warrant.
Each whole warrant will be exercisable at $0.15 per share for a period of two years. Canada Nickel will also receive a back-in right to purchase a 25% interest in the Lucas Gold Project from Noble after certain trigger conditions are met.
The back-in right would allow Canada Nickel to acquire the 25% interest by making a payment to Noble equal to four times the exploration and maintenance expenditures incurred by Noble on the property. These expenditures include costs related to geological, scientific, and other analyses and reports.
The trigger date for the back-in right will be the earliest of three events: 36 months after closing, the date when at least $5 million of exploration expenditures have been incurred on or with respect to the property, or the date Noble enters into a binding agreement to sell the property or undergoes a change of control, unless the back-in right is not affected by that transaction.
Canada Nickel also announced that it acquired a 100% interest in a set of mining claims in Lucas Township. These claims are within the company’s proposed Crawford Nickel Project overall footprint.
The purchase of the Lucas Township claims includes the issuance of 60,000 Canada Nickel common shares, subject to a four-month hold. The claims also include a 1.5% net smelter return royalty, of which 50% can be bought down for $500,000, reducing the royalty to 0.75%.
Canada Nickel is advancing nickel-sulphide projects intended to supply nickel for electric vehicle and stainless steel markets. The company is anchored by its 100%-owned flagship Crawford Nickel-Cobalt Sulphide Project in the Timmins-Cochrane nickel district.
Noble Mineral Exploration is a Canadian junior exploration company with holdings across Ontario, Quebec, and Newfoundland and Labrador. Its portfolio includes gold, nickel-cobalt, base metals, graphite, uranium, rare earth element, scandium, copper, PGM, and other exploration properties.
Stephen J. Balch, P.Geo., Vice President of Exploration at Canada Nickel and a Qualified Person under National Instrument 43-101, reviewed and approved the technical information in the announcement.
KEY QUOTES:
“We are pleased to position the Company to generate value from a non-core property with Noble Mineral Exploration and wish them well with their exploration activities.”
Mark Selby, CEO of Canada Nickel
