Noble Mineral Exploration Inc. (TSX-V: NOB, FRANKFURT: NB7, OTCQB: NLPXF) announced it has entered into a binding Letter of Intent to acquire the Lucas Gold Project from Canada Nickel Company Inc. ("CNC"). The transaction involves Noble issuing 5,000,000 units valued at $0.06 per unit, with each unit consisting of one common share and one-half non-transferable warrant exercisable at $0.15 per share for two years. CNC will also retain a Back-in Right to purchase a 25% interest in the property by paying Noble four times the exploration expenditures incurred, triggered upon the earlier of 36 months from closing, $5 million in exploration expenditures, or a sale or change of control event.
The Lucas Gold Project is a drill-ready property located approximately 30 km north of Timmins, Ontario, a region known for over 75 million ounces of gold production. It is also situated 20 km northeast of the Kidd Creek Mine and 20 km east of the Crawford Nickel Resource. The project has access via paved Highway 655, with ample power and water, and a Memorandum of Understanding (MoU) with local First Nations.
In 2018, Noble completed 15 diamond drill holes totaling 3,184 meters covering a 650m strike length of a 1,700m gold mineralized structure. The company identified 37 historical drill collars and twinned three of them. The project hosts six discrete IP anomalous trends, only one of which has been drilled. Gold mineralization is structurally controlled and occurs as discrete lenses within pyrite-gold mineralized tuffaceous units.
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." Future work will include drilling on the initial IP anomaly to further define gold mineralization and testing the other five undrilled IP anomalies.
Stephen J. Balch, P.Geo. (ON), VP Exploration of CNC and a qualified person under NI 43-101, verified the data and approved the technical information on behalf of Canada Nickel. Wayne Holmstead, P.Geo (ON), a qualified person under NI 43-101, reviewed and approved the technical information on behalf of Noble.
The transaction is subject to negotiation of a definitive agreement and approval from the TSX Venture Exchange. Further details will be announced as work proceeds. Noble Mineral Exploration Inc. is a Canadian junior exploration company with holdings in Canada Nickel Company Inc., Homeland Nickel Inc., East Timmins Nickel Inc., and various exploration properties in Ontario, Quebec, and Newfoundland and Labrador. More information is available at https://www.noblemineralexploration.com.
