SYDNEY, AUSTRALIA: NickelX Limited has signed a Binding Terms Sheet with MG Resources Pty Ltd to acquire the Cosmos South Nickel Project which is located 10km south of the world-class high-grade Cosmos Nickel operations (Western Areas) and 20km North of the world class large scale Leinster Nickel operations (BHP), within the prolific Wiluna Greenstone Belt (WGB), WA, a news release noted.
Pursuant to the Terms Sheet, MG Resources has agreed to grant NickelX the exclusive option to purchase the Cosmos South Nickel Project (Option). Subject to shareholder approval, the Option is exercisable by the Company at any time from the date of the Terms Sheet until 6 months from the date of the Terms Sheet.
Subject to the exercise of the Option, NickelX will earn a 100% interest in the project by undertaking exploration expenditure of not less than $500,000 over a 24-month period and making milestone payments of $150,000 in NKL shares 12 months from the date of the Terms Sheet and $150,000 in NKL shares 24 months from the date of the Terms Sheet.
The shares will be calculated based on a 5-day volume weighted average price of NKL’s shares immediately prior to the relevant milestone date.
NickelX Managing Director Matt Gauci commented: “The NickelX team has quickly progressed the Fire Dragon Nickel target in the Albany Fraser Orogen (AFO) through a systematic exploration program and, as previously stated, have generated a pipeline of additional Nickel opportunities, based on our Nickel database.
The Cosmos South Nickel project ranked highly on our target list and following our due diligence the team believes the project represents a very compelling nickel target demonstrated by geological interpretation, strong magnetics indicating ultramafic rocks and very strong and large bedrock conductors.
The acquisition of the Cosmos South Nickel project will position Nickel X as one of the very few companies with project areas within the prolific Wiluna Greenstone Belt outside of Western Areas and BHP Nickel West.”