Proactive Investors - Nickel North Exploration Corp (TSXV:NNX) said it has entered into an amending agreement with 1844 Resources Inc (TSXV:EFF) regarding their option agreement to sell its 100% interest in the Hawk Ridge copper-nickel project in northeastern Quebec.
Under the amended payment terms and conditions, 1844 is now entitled to acquire a 10% undivided interest in the project two business days after the TSX-V approves the option agreement by paying $325,000 and issuing 5 million units valued at $175,000 and 1 million common shares of 1844 to Nickel North. Each $0.035 unit will consist of one common share of 1844 and one common share purchase warrant, with each warrant entitling the holder to buy another share for $0.055 for 36 months from the date of issuance.
If 1844 exercises the first option, it can acquire an additional 10% undivided interest in the project by paying $1.5 million and issuing 1 million of its common shares to the company on the first anniversary of the effective date, and incurring $500,000 of exploration expenditures before the first anniversary of the effective date.
Nickel North noted that if 1844 does not satisfy the revised payment terms and conditions of the second option, its option to acquire the Hawk Ridge Project will terminate and it will return the 10% undivided interest in the project that it acquired upon the exercise of the first option for nil consideration, resulting in 1844 holding no interest in the Hawk Ridge Project.
The company said the remaining terms and conditions of the option agreement remain unchanged and the amended agreement remains subject to TSX-V approval.