TORONTO, Aug. 2, 2019 /CNW/ - Nickel Creek Platinum Corp. (TSX:NCP) ("Nickel Creek" or the "Company") is pleased to announce that it will conduct a 2019 geophysics and sampling program at its 100%-owned Nickel Shäw Project located in the Yukon, Canada. The program is designed primarily to test the Quill exploration target area, which is along trend approximately 1.7 km to the southeast of the main Wellgreen deposit. The main Wellgreen Deposit has a strike length of 2.8 km, situated within a broader land position spanning 18 km. Schematics depicting the main deposit and exploration targets, including Quill, can be found in the Company's corporate presentation on the Company's website at www.nickelcreekplatinum.com.
Following Mr. Cam Bell's review of the Nickel Shäw Project (see news release dated June 5, 2019) and subsequent discussions with Mr. Bell regarding his recommendations, the Company has concluded that this program will be beneficial to the overall understanding and knowledge of the mineral potential that may exist outside of the main deposit area and within the Company's land position. The Quill area is essentially an untested target and with the permits now having been received, the Company plans to initiate a large loop, transient electromagnetic survey in August 2019. The program is being conducted by SJ Geophysics and will test for massive or semi-massive sulfide mineralization in an underexplored area of the property. Additionally, surface samples will be collected in order to better understand spatial variability of nickel content in olivine or serpentine. It is anticipated that this study will determine areas where nickel in olivine has interacted with sulfides and thus, prospective ground for future exploration and the total cost of the program is estimated at $0.2 million.
Nickel Creek is also advancing environmental baseline studies at the Nickel Shäw Project and continues with its community engagement program. The Nickel Shäw Project remains Nickel Creek's flagship asset with a significant option on a mix of metals including nickel, copper, cobalt, platinum group metals and gold. Located in a favourable jurisdiction, this project is extremely well positioned to benefit from the growing global demand in the battery market.
In connection with funding the 2019 geophysics and sampling program, the Company also announces that it intends to complete an additional non-brokered private placement (to the private placement previously announced on June 26, 2019) of up to 3,170,732 "flow-through" units of the Company ("FT Units") at a price of $0.0574 per FT Unit for aggregate proceeds of approximately $182 thousand. Each FT Unit will consist of one (1) "flow-through" common share (each a "FT Share") and one (1) common share purchase warrant (each a "FT Warrant"), with each FT Warrant exercisable for one common share (each a "Warrant Share") at an exercise price of $0.08 for a period of five (5) years from the date of issuance, subject to adjustment upon certain customary events (collectively, the "Flow-Through Offering"). The FT Shares and FT Warrants (and any Warrant Shares, as applicable) will be subject to a statutory hold period of four months and one day from the date of issuance. The closing of the Flow-Through Offering remains subject to the approval of the Toronto Stock Exchange and other customary closing conditions.
The funds from the Flow-Through Offering will be used by the Company to incur "Canadian exploration expenses" that will qualify as "flow-through mining expenditures", each as defined under the Income Tax Act (Canada).
In conjunction with the Flow-Through Offering, the TSX requires the Company to issue a supplement to the Company's Management Information Circular dated July 16, 2019.
About Nickel Creek Platinum Corp.
Nickel Creek Platinum Corp. (TSX: NCP; OTCQB: NCPCF) is a Canadian mining exploration and development company and its flagship asset is its 100%-owned Nickel Shäw Project. The Nickel Shäw Project is a large undeveloped nickel sulphide project in one of the most favourable jurisdictions in the world, with a unique mix of metals including copper, cobalt and platinum group metals. The Nickel Shäw project has exceptional access to infrastructure and is located three hours west of Whitehorse via the paved Alaska Highway, which further offers year-round access to deep-sea shipping ports in southern Alaska. The Company is also investigating other opportunities for shareholder value creation.
The Company is led by a management team with a proven track record of successful discovery, development, financing and operation of large-scale projects. Our vision is to create value for our shareholders by becoming a leading North American nickel, copper, cobalt and PGM producer.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain information that may be deemed "forward-looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "believe", "continue", "plans" or similar terminology, or negative connotations thereof. All information in this release, other than information of historical facts, including, without limitation, statements relating to the Flow-Through Offering, and general future plans and objectives for the Company and the Nickel Shäw Project, are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information.
For more information on the Company and the key assumptions, risks and challenges with respect to the forward-looking information discussed herein, and about our business in general, investors should review the Company's most recently filed annual information form, and other continuous disclosure filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Nickel Creek Platinum Corp.
For further information: Nickel Creek Platinum Contact: Diane Garrett, President & Chief Executive Officer, 1-416-304-9318, [email protected]