Noble Mineral Exploration Inc. (TSXV: NOB) or (OTCQB: NLPXF) is currently trading for $0.145 per share and owns 5,913,000 shares of Canada Nickel Company Inc. (TSXV: CNC).
Next month, NOB will distribute 3,500,000 of its CNC shares to NOB shareholders on a pro-rata basis.
Based on CNC's closing price yesterday of $2.96 per share, NOB's Special Dividend of 3,500,000 CNC shares has a value equal to 34.76% of NOB's current market cap of $29.807 million. NOB shareholders at the close of business on April 25, 2022, will receive NOB's Special Dividend of CNC shares. NOB's common shares will begin trading on an ex-dividend basis, or without the entitlement to the Dividend, from the opening of trading on April 26, 2022 (being the next trading day after the Dividend Payment Date).
Following the distribution of NOB's Special Dividend of 3,500,000 CNC shares, NOB will continue to own approximately 2,413,000 CNC shares. This does not include additional CNC shares that NOB will soon receive for two new agreements that NOB signed with CNC on February 24, 2022.
On February 24, 2022, NOB agreed to allow CNC to have the option of buying into its claims in Mann, Hanna, Duff and Reaume Townships. CNC will soon be making an initial payment to NOB of 250,000 CNC shares plus $100,000 cash. In a separate agreement announced on February 24, 2022, CNC will soon be making a payment to NOB of 500,000 CNC shares for the purchase of approximately 198 of NOB's mineral rights only patented properties in Kingsmill and Mabee Townships. Between the two new agreements announced on February 24, 2022, NOB will soon be receiving a total of 750,000 additional CNC shares.
CNC is currently in the process of raising $45 million in a Bought Deal being priced at a premium above CNC's current share price. Underwriters have agreed to purchase 8,325,806 common shares of CNC at a price of $3.10 per common share; 3,424,658 flow-through shares of CNC at a price of $3.65 per flow-through share; and 1,500,000 charity flow-through shares of CNC at a price of $4.46 per charity flow-through share.
Based on CNC's PEA results, CNC's Crawford Nickel Sulphide Project in Ontario once in production is expected to be among the Top 5 nickel sulphide operations globally with average annual nickel production of 42,000 tonnes.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from NOB of USD$100,000 cash for a twelve-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.