Boreal Metals Acquires 2 Additional Cobalt/Nickel Projects in the Prolific Skelleftea Mining Area in Northern Sweden - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - April 12, 2018) - Boreal Metals (TSXV: BMX), through its newly created subsidiary, Boreal Energy Metals, has executed another definitive agreement with EMX Royalty Corporation acquiring two additional cobalt/nickel projects. These two projects, located in the prolific Skellefteå mining area in Northern Sweden, contain massive sulfide mineralization, enriched in nickel, copper, and cobalt, with both properties hosting historic resources.
Platinum group elements and gold are also known to be enriched in the zones of mineralization, but have not been systematically assessed, representing additional exploration potential. As with the 6 previous properties in its portfolio, this latest acquisition follows Boreal's development plans of acquiring past producing projects and applying modern techniques.
Karl Antonius, President and CEO, stated: "With the acquisition of Mjövattnet and Njuggträskliden, Boreal is executing its exploration project growth strategy by building on an excellent foundation of base and energy metals exploration projects in Scandinavia. As Sweden and the European Union look towards the future needs for innovation and strategic metals, our projects with historic production have the potential to be part of the production chain. The acquisition of projects continues to deliver significant benefits to Boreal's shareholders and partners."
Subject to regulatory approval, Boreal Energy will issue EMX common shares that represent a 4% equity ownership of Boreal Energy, which increases EMX's equity ownership to 9.9%. Boreal Energy has the continuing obligation to EMX, to issue additional shares, at no cost, in order to maintain EMX's ownership at 9.9% until Boreal Energy has raised CDN$3 million in equity, after which, EMX will have the right to participate in future financings to maintain its 9.9% ownership.
EMX will also have a 3% NSR, of which 1% can be repurchased, and receive annual advance royalty payments of US$20,000 on each project, increasing by US$5,000 annually until reaching US$60,000 annually. EMX will also be reimbursed approximately US$37,000 to cover previous expenses.
The 9,000 hectare Njuggsträskliden and 6,400 hectare Mjövattnet licenses cover multiple drill defined zones of nickel-rich sulfide mineralization, which were recognized during a nationwide reconnaissance exploration conducted between 1968 and 1984 by various government entities, including the Swedish Geological Survey.
More than 80 occurrences were identified in the region, and over the course of 20 years, several hundred holes were drilled on the 2 projects, intersecting both disseminated and massive styles of nickel-copper-cobalt sulfide mineralization.
Given the limited shallow historic drilling, generally less than 150 metres, and untested targets at depth and along strike, Boreal believes that there is excellent potential for new discoveries on these two new acquisitions.
The Nordic region, with excellent infrastructure including deep-water ports with year-round ice-free harbors, is host to 26 active mines and 7 smelters.
Northvolt and Scania, a division of Volkswagen Truck & Bus, announced on January 25th, that they have jointly agreed to develop and commercialize battery cell technology for heavy commercial vehicles.
Northvolt has selected a location in northern Sweden to build Europe's biggest battery factory, and plans on using locally sourced raw materials, especially from the mineral-rich Nordic peninsula.
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