(TheNewswire)
TORONTO, Ontario – TheNewswire – February 7, 2025 - AFR NuVenture Resources Inc. (the “ Company ”) wishes to announce that it has entered into a letter of intent (“ LOI ”) from an arms’ length private company to option a 100% interest in the mining claims located near Timmins, Ontario known as the Massey Nickel Project (the “Property”).
The Property, which comprises approximately 2000 hectares, is an exceptional exploration project with a data supported exploration plan already in place. It is situated in the Kamiskotia Complex, host to number of VMS deposits and nickel sulphide zones. The property in the past was incorrectly interpreted to be underlain by a large granite intrusion. Recent geological traverses have established extensive gabbro, host rock for nickel sulphide mineralization and recent prospecting has identified two sulphide occurrences each coincident with VTEM anomalies. Numerous priority VTEM targets have been identified and modelled for drilling by Geotech. The project has quality targets and is drill ready; a work permit has been submitted and approved.
Doug Hunter, P. Geo. and a director of the Company commented: “the setting of multiple VTEM target anomalies in mineralized gabbro of the Kamiskotia Complex and their relationship to known surface mineralization is remarkably analogous to that of the Lynn Lake, Manitoba, gabbro hosted, nickel-copper-cobalt deposits. The Lynn Lake mine was a significant past producer for 24 years and is now being re-evaluated for new mine development activity.”
In order to earn a 100% interest in the Property, the Company is required to:
a. pay a total cash consideration of $325,000 as follows:
i. $40,000 upon the date of execution of the Definitive Agreement
ii. $60,000 on the first anniversary date of the Definitive Agreement
iii. $75,000 on the second anniversary date of the Definitive Agreement
iv. $150,000 on the third anniversary date of the Definitive Agreement
b. Issue a total of 9,500,000 common shares of the Company (the “ Consideration Shares ”) as follows:
i. 1,000,000 upon the date of execution of the Definitive Agreement
ii. 2,000,000 on the first anniversary date of the Definitive Agreement
iii. 3,000,000 on the second anniversary date of the Definitive Agreement
iv. 3,500,000 on the third anniversary date of the Definitive Agreement
c. grant a 2.0% net smelter returns royalty (“NSR”) on the Property with an option for AFR to re-purchase 50% of the NSR at any time at a price of $1,000,000.
The LOI provides that the parties will negotiate a definitive agreement (the “ Definitive Agreement ”), subject to the satisfactory completion of mutual due diligence. The Definitive Agreement will be executed within 30 days of the date following the execution of the LOI, failing which this LOI will terminate unless both parties agree to extend the LOI.
In addition to the customary warranties, representations, covenants, and conditions set out in a typical agreement for a transaction of this nature, closing of the Option and the issuance of the Consideration Shares is subject to all necessary corporate and regulatory requirements, acceptances, and approvals, including that of the TSX Venture Exchange.
A. Doug Hunter, P. Geo ., is the qualified person responsible for approving the technical information contained within this release pertaining to the Property.
On behalf of the Board of Directors,
“John F. O’Donnell”
John F. O’Donnell, Chairman and CEO
For more information on the Company, investors should review the Company's filings on SEDAR+ at www.sedarplus.ca and our website at www.afrnuventure.com .
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook.
Such statements include, among others, the Company’s planned exploration program and the Company’s expectations regarding the completion of the Definitive Agreement Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding its ability to initiate and complete future exploration work as expected and acquire and finance other projects. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of the Company's future exploration work, technical, safety or regulatory issues, social and market conditions at a project site or in the area which may cause a reduction or suspension in operations and activities which may ultimately affect and delay the exploration timeline.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.
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