VANCOUVER, British Columbia,
Dec. 14, 2020 /CNW/ -- Nickel Rock
Resources Inc. ("the Company") (TSX-V: NICL)
(OTCQB: SSMLF) is pleased to announce that planning for
our 2021 exploration programs is underway and to fund these
programs we are pleased to announce that we have arranged a
flow-through non-brokered private placement offering of 4,000,000
flow-through units (FT Units") at $0.13 per FT Unit raising gross proceeds of
$520,000. Details of the
exploration program will be outlined in a NI 43-101 report soon to
be released.
Each FT Unit is comprised of one common share and one share
purchase warrant ("Warrant"). Each Warrant will entitle the
holder thereof to purchase one additional common share of the
Company at an exercise price of $0.15
per share for a period of two years from closing, subject to TSX
Venture Exchange ("Exchange") approval.
Finder's fees will be issued in connection with the private
placement and are subject to Exchange approval. All
securities issued will be subject to a four month and a day hold
period under applicable Securities Laws.
Corporate Update
From March of this year, the Company has been continually active
and has accomplished a lot during a time of global uncertainty
caused by the COVID-19 global pandemic. This progress has
positioned the Company for a bright and successful
future.
Most recently, the Company has been completely rebranded as
Nickel Rock Resources to reinforce our plans for exploring and
developing great nickel assets. To facilitate this plan the
Company completed an equity financing totalling $1,000,000 and successfully acquired a 100%
interest in several highly prospective claims which include the
Hard Nickel Centre Group(which includes the Klone claim group),
Hard Nickel 3, Hard Nickel 4 and the Nickel 100 claim
group. The acquisition of the Hard Nickel Group and the
Nickel 100 claims are subject to Exchange approval. The properties
are located near Canada's prolific
Omineca mining district 100kms northwest of Fort St James, British Columbia. Nearby
is the prolific Mt. Milligan mine owned and operated by
Centerra. The area is very prospective for nickel-based
mineral deposits as can be demonstrated by the recently announced
Baptiste Nickel Deposit owned by FPX Minerals. Also, a key
part of the rebranding of Nickel Rock, is the launch of our new
website (http://www.nickelrockresources.com/) and a soon to be
launched social media campaign.
The Nickel Rock Resources mineral claims are partially underlain
by rocks like those hosting the Decar project of FPX Nickel where
mineralization includes nickel, cobalt, and chromium. At least some
of the nickel mineralization occurs as awaruite which is a
naturally occurring nickel-iron alloy important in the manufacture
of environmentally efficient batteries for the electric vehicle
markets globally. The mineral awaruite is both highly magnetic and
very dense and is therefore amenable to concentration by mechanical
processes including magnetic and gravity separation. This style of
deposit is unique and presents considerable metallurgical and
processing cost saving advantages.
Significantly, the awaruite found is found in a serpentinized
ultramafic rock. In 2018, G. Dipple at the University of British Columbia began the Geoscience
BC funded research project "Carbon Mineralization Potential
Assessment for BC" scheduled for completion in early 2021. In late
2020 a preliminary assessment report was published. One of the key
items from the report was "The use of reactive serpentinite
tailings from nickel mining as a carbon sink has the potential to
make nickel mining carbon neutral or a net carbon sink." The
presence of serpentinized ultramafic rocks has been repeatedly
documented in the areas covered by the claims of the Nickel Rock
Projects, as well as at FPX Nickel Corp.'s Decar Project (Dipple,
G. et.al., Geoscience BC Report 2020-15). The funds to be received
from our flow through financing are earmarked for detailed
exploration programs on our two very prospective nickel projects in
British Columbia and will start as
soon as weather permits.
As most readers are aware, nickel is essential for the
manufacture of countless products that we rely on daily including
being a principal component used in the manufacture of Electric
Vehicle ("EV") Batteries. The battery market only consumes
three percent (3%) of the world's available nickel but that figure
is set to grow substantially. Some projections are forecasting that
by 2025 there will be more that 140 million EV's on the road, and
by 2030 that number could double as the industry is leaning towards
batteries with a higher nickel concentration as they tend to last
longer. This makes EV's a more attractive option to consumers and
acts as an incentive to make the transition.
The Company has seen the commodity spot price for nickel to be
in a steady uptrend while world stockpiles have been on the decline
and EV manufacturers are calling for more supply of nickel because
nickel quantities are increasing in batteries as they increase the
amount of charge a battery can hold, thus allowing the EV's to
travel greater distances. One such company is Tesla Inc., the
world's leading EV manufacturer. Tesla's Founder, Elon Musk, stated that a very large contract
would be signed if a company could produce nickel with a lowered
carbon footprint by using more environmentally friendly ways of
mining. His comments made waves in the nickel space and several
juniors have benefited from his comments and surged 2 to 3 times
their value.
In addition to our nickel exploration properties in Canada, the Company also has 100% title to 77
lithium placer claims covering over 640 hectares in Clayton Valley,
Nevada, which until recently has
been home to North America's only
producing lithium mine. The Company's Clayton Valley
Project is an early-stage lithium brine prospect in Esmeralda County, Nevada. Plans are
being drawn up for an exploration program early in 2021 to begin
exploration on this well-located mineral project.
Located contiguous and adjacent to Nickel Rock Resource's
Clayton Valley Project, the Silver Peak Lithium Brine Mine and
Processing Facility has been in production since 1966 using
traditional evaporation pond technology and has been until this
year been the only producing lithium brine deposit in North America. Albemarle Corporation purchased
the mine as part of its acquisition of Rockwood Lithium that closed
in early 2015. The United States Geological Survey estimates that
over 300 million pounds of lithium carbonate have been produced at
this facility since 1966.
In addition to adding working capital and adding several new
100% owned mineral assets, since the beginning of this year, Nickel
Rock has added several experienced people to our advisory team
which will assist the Company on all our mineral exploration
properties. We look to add to both our management team and
board over the remainder of calendar 2021.
Both in the near-term and long-term, the Company believes the
market for nickel and lithium will remain strong and we look
forward to exploring and developing our mineral exploration
projects in North America. The future for nickel and lithium
is certainly bright and Nickel Rock management is extremely
positive.
We are pleased that our shareholders support our company and our
exploration programs in Canada.
Thank you for joining us on this journey, and we look forward to
a great 2021.
Qualified Person
Jacques Houle, P.Eng., a
qualified person as defined by NI 43 - 101, is responsible for the
technical information contained in this release. All scientific and
technical information in this press release has been prepared under
the supervision of Jacques Houle, P.
Eng, a consultant and a qualified person within the meaning of
National Instrument 43-101. Readers are cautioned that the
information in this press release regarding the property of FPX
Nickel Corp is not necessarily indicative of the mineralization on
the property of interest. The QP has been unable to verify the
information in this press release about the Decar property, (such
information was publicly disclosed in their PEA dated Sept. 9, 2020) and the QP believes it is
reliable.
About Nickel Rock Resources Inc.
The Company is a Canadian-based mineral exploration company
which has been active in the resource sector in British Columbia and elsewhere in
Canada. Nickel Rock Resources Inc. is a Canadian based
exploration company whose primary listing is on the TSX Venture
Exchange. The Company's maintains a focus on exploration for
high value battery metals required for the electric vehicle (EV)
market. The Company recently announced several acquisitions
resulting in a significant property package prospective for
awaruite, a naturally occurring nickel-iron alloy important in the
manufacture of environmentally efficient batteries for the electric
vehicle markets globally.
On Behalf of the Board of Directors
"Robert Setter"
Robert Setter, President &
CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements which include, but are not limited to,
comments that involve future events and conditions, which are
subject to various risks and uncertainties. Except for statements
of historical facts, comments that address resource potential,
upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and
others are forward-looking. Forward-looking statements are not
guarantees of future performance and actual results may vary
materially from those statements. General business conditions are
factors that could cause actual results to vary materially from
forward-looking statements.
Nickel Rock Resources Inc.
604- 428-5690
www.nickelrockresources.com
info@nickelrockresources.com
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SOURCE Nickel Rock Resources Inc.