www.nickelxlimited.com
ASX ANNOUNCEMENT
29 MARCH 2022
For personal use only
NICKELX COMMENCES EXPLORATION AT COSMOS SOUTH NICKEL PROJECT
HIGHLIGHTS
• Following receipt of shareholder approval to acquire the Cosmos South Nickel Project (see ASX: NKL 17/03/22), the Company has immediately commenced exploration activities at the Project.
• NickelX has delivered to the vendors of Cosmos South a notice to exercise the option to acquire the project, and is proceeding with formal agreements and, as agreed, cash/share payments and commitment to minimum expenditure.
• NickelX has also contracted Drone Geoscience Pty Ltd to undertake a Drone Magnetic survey and Southern Geoscience Consultants Pty Ltd to process the data.
• The following information regarding the (1) Option Exercise Notice (2) Magnetic Surveys (3) Top 20 Shareholders and (4) Company Q & A, is provided for existing and future shareholders of the Company.
NickelX Limited ("NickelX", "NKL" or "The Company") is pleased to report that it has commenced exploration activities at the Cosmos South Nickel Project ("the Project") after receiving overwhelming shareholder support to acquire the Project. Notification to the vendors of the Project that it will exercise the Option and commence exploration activities has been provided.
The Cosmos South Nickel Project is located 10km south of the world-class, high-grade Cosmos Nickel operations (Western Areas Limited - IGO Limited) and 20km north of the world class Leinster Nickel operations (BHP - Nickel West), within the prolific Wiluna Greenstone Belt (WGB).
Pursuant to the initial Terms Sheet, NickelX agreed to an exclusive option to purchase the Cosmos South Nickel Project and, subject to shareholder approval, exercised the option within the relevant timeframe.
According 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.
NickelX has contracted Drone Geoscience Pty Ltd to undertake a Drone Magnetic survey in the June Quarter and Southern Geoscience Consultants Pty Ltd to process the data to further map ultra-mafic rocks and identify drill targets.
NickelX Managing Director Matt Gauci commented:
"The Cosmos South Nickel project ranked highly on our target list and following our due diligence, approval of shareholders and now exercise of the Option the team are excited to get on the ground with drilling on the basis of geological interpretation, upgrading magnetics indicating ultramafic rocks and re-compiling very strong and large bedrock conductors."
NickelX Limited
Address: Level 3 16 Milligan St Perth WAPhone: +61 8 9322 7600 Email:info@nickelxlimited.com
www.nickelxlimited.com
Cosmos South Nickel Project Summary
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Cosmos South M36/580 is situated within the highly endowed nickel rich region of the Agnew-Wiluna Greenstone belt. The belt hosts world class nickel deposits of the Leinster Nickel Operations, Mt Keith, Yakabindie, Honeymoon Well and Cosmos (Figure 1).
Figure 1. Cosmos South project location within the Wiluna Greenstone Belt
For further information on Cosmos South please see ASX: NKL 17/03/22.
NickelX Limited
Address: Level 3 16 Milligan St Perth WAPhone: +61 8 9322 7600 Email:info@nickelxlimited.com
www.nickelxlimited.com
Notice of Exercise of Option to Acquire Cosmos South
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NickelX Limited is also pleased to announce that it has exercised the option to acquire the Cosmos South Nickel Project (comprising M36/580 (Lake Miranda) (Tenement)) from MG Resources Pty Ltd (ACN 651 489 539) (MG Resources) following receipt of shareholder approval pursuant to Listing Rule 11.1.2 at the general meeting held on 16 March 2022.
The Company now has the right to earn up to an undivided 100% interest in the Cosmos South Nickel Project by:
(a)
(b)undertaking exploration expenditure of not less than $500,000 on the Tenement over a period of 24 months (Earn-in Period); and making the following milestone payments:
(i) issuing to MG Resources fully paid ordinary shares (Shares) to the value of $150,000 on the date that is 12 months from the date of the agreement (calculated based on the volume weighted average price (VWAP) of Shares traded on the ASX in the 5 days prior to the date of issue (Tranche 1 Shares). If issued, the Tranche 1 Shares will be subject to ASX escrow until 7 May 2023 (being 24 months from the date of the Company's official quotation); and
(ii) issuing to MG Resources Shares to the value of $150,000 on the date that is 24 months from the date of the agreement (calculated based on the VWAP of Shares traded on ASX in the 5 days prior to the date of issue),
(together, the Earn-In Requirements).
Settlement of the acquisition of the Cosmos South Nickel Project will occur on that date which is 5 business days after the satisfaction (or waiver by the Company) of the Earn-In Requirements, or such other date as agreed between the parties.
NickelX Limited
Address: Level 3 16 Milligan St Perth WAPhone: +61 8 9322 7600 Email:info@nickelxlimited.com
www.nickelxlimited.com
Magnetic Surveys commence at Cosmos South
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Existing Airborne Magnetic survey data at Cosmos South is 200 m line spacing at 80 m above ground and flown 160-340 degrees. The current contracted Drone Magnetics is proposed to be surveyed at 25 m E/W traverses at a height of probably 30m.
The survey objective of the Drone Magnetics is to better define the magnetic characteristics of the anomaly associated with the identified MLEM and FLEM anomaly's and to map structure (faults, etc) and lithology based on the results.
Area of drone magnetic survey at 25m traverses and height of 30m
Figure 2: Drone Magnetic Survey traverses at Cosmos South Nickel Project
NickelX Limited
Address: Level 3 16 Milligan St Perth WAPhone: +61 8 9322 7600 Email:info@nickelxlimited.com
www.nickelxlimited.com
Indicative Drill plan at Cosmos South
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Figure 3: Interpretive cross section showing historical and planned drilling at the Cosmos South prospect. Four planned drill holes (2 per drill pad) will test both modelled conductive plates, interpreted as potential Ni-bearing strata at a range of depths.
Address: Level 3 16 Milligan St Perth WANickelX Limited
Phone: +61 8 9322 7600 Email:info@nickelxlimited.com
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Nickelx Ltd. published this content on 28 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2022 22:53:01 UTC.