Xander Resources acquiring 100 mineral claims, Ontario
Xander Resources Inc. [XND-TSXV; XNDRF-OTCQB; 1XI-FSE] has entered into an option agreement to acquire 100% interest in certain 100 mineral claims located near Timmins, northeastern Ontario.
The property consists of 100 separate mineral claim blocks comprising over 21 km2 that are located contiguous to the west of the company’s existing Timmins North claims. Historical work at the property includes airborne geophysical survey work (Geotech’s helicopter-borne VTEM (versatile time domain electromagnetic)) which has delineated six drill targets in line with the existing high-priority electromagnetic anomalies within the property (often indicative of sulphide mineralization) and numerous major and minor structures.
With the acquisition of these claims, the company’s Timmins North Block now consists of 336 claims that are not only near Canada Nickel Company’s (CNC) Crawford Project, where CNC has completed a preliminary economic assessment only 20 months after the commencement of exploration drilling that indicates 25-year mine with an after-tax NPV8% of $1.2 billion, but also adjacent and along trend with CNC’s recently identified Reid Discovery which has already through early exploration delineated a mineralized footprint 90% as large as Crawford.
The company’s plan over the coming months is to build on the geophysical work completed through further geophysical mapping and interpretation, sampling, and other techniques in order to launch a comprehensive drill program following its upcoming near-term drill program on the prior optioned claims comprising the North Block.
Deepak Varshney, CEO, said, “We are very pleased to have been able to add these claims to our portfolio. Our goal is to build a significant nickel footprint in this district and acquiring these claims, particularly in light of the recent large-scale discovery by CNC at its Reid property, will help us successfully move forward with that objective.”
Pursuant to the agreement, the company will grant to the Vendors a 3% net smelter returns royalty and will provide the following commitments to the vendors, or its assigns to earn an undivided 100% interest in the property: $50,000 cash to the vendor upon the execution date of the agreement or as soon as practicable thereafter; 9,000,000 common shares of the company to be issued to the vendors at a deemed price of $0.035 per share within five days of Exchange approval to the transaction; a further $100,000 to the vendor or its assigns on or before 6 months from the execution date of the agreement, in cash and/or shares, at the election of the company, at a deemed value according to the greater of the 10-day volume-weighted average price (VWAP) or discounted market; a further $100,000 to the vendor or its assigns on or before 12 months from the execution date of the agreement, in cash and/or shares, at the election of the company, at a deemed value according to the greater of 10-day VWAP or discounted market price; a further $100,000 to the vendor or its assigns on or before 18 months from the execution date of the agreement, in cash and/or shares, at the election of the company, at a deemed value according to the greater of 10-day VWAP or discounted market price; and a further $100,000 to the vendor or its assigns on or before 24 months from the execution date of the agreement, in cash and/or shares, at the election of the Company, at a deemed value according to the greater of 10-day VWAP or discounted market price.
Xander agreed to incur not less than $500,000 of qualified exploration expenditures, including 1,500 metres of diamond drilling on the property within two years of the closing date, of which not less than $50,000 will be incurred within one year following the closing date. Up to a maximum of $400,000 of exploration expenditures may be satisfied through payments of cash or stock at the election of the company.
The acquisition and transactions, including the issuance of shares, are subject to TSX Venture Exchange approval.