Update on Conic’s Canadian and Australian Tier 1 Nickel Royalty Portfolio
TORONTO, ONTARIO, July 29, 2020 — Conic Metals Corp. (“Conic” or the “Company”) (TSXV: NKL) is pleased to provide an update on its royalty portfolio and remind investors that it has tremendous exposure to the types of nickel mines that Tesla’s Chief Executive Officer, Elon Musk, is looking for.
Elon Musk, Tesla’s CEO, stated on their recent quarterly conference call that “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way. So hopefully this message goes out to all mining companies. Please get nickel.”
“Tesla is looking for nickel that is mined in an efficient and environmentally sensitive way and Conic holds significant royalties on three of the largest undeveloped nickel mines in the World” stated Justin Cochrane, President and CEO. “Canada and Australia have some of the toughest environmental regulations in the world and both countries host several very large open-pit sulphide nickel deposits. Some of the best of which we hold royalties on. When these projects are eventually developed, each will be a significant cash contributor to Conic.”
On July 22, 2020, Waterton Global Resource Management, Inc. (“Waterton”) announced that it was acquiring the remaining 28% interest in the Dumont Nickel Project (“Dumont”) from Karora Resources Inc. (formerly RNC Minerals) for up to $48 million, consisting of $7.4 million in cash and up to $40.2 million in deferred consideration upon the sale or other monetization of Dumont by Waterton. Conic holds a 1.75% NSR on Dumont, which is a large-scale, low-cost, long-life, shovel-ready and fully permitted nickel-cobalt-PGE development project located in Quebec, Canada.
In addition to the Dumont NSR of 1.75%, Conic also holds a 2.0% NSR on the Turnagain Nickel-Cobalt Project, owned by Giga Metals Corp. (TSXV: GIGA) and a 1.5% GRR on the Flemington Nickel-Cobalt-Scandium Project owned by Australian Mines (ASX: AUZ), among many other royalty assets.
The table below presents Conic’s nickel assets inside its investment portfolio.
|Royalty Name||Owner||Country||Stage||Primary Metal(s)||Royalty Type and %|
|Ramu Nickel Cobalt
Corporation of China
|Papua New Guinea||Production||Ni-Co||JV Interest
|Australian Mines Ltd.||Australia||Exploration||Ni-Co-Sc||1.5% GRR|
International Mining Corp.
Conic Metals Corp. is a base metals company offering direct exposure to nickel and cobalt, both being critical elements of electric vehicles and energy storage systems. Conic holds an 8.56% joint-venture interest in the producing, long-life and world-class Ramu Nickel-Cobalt Operation located in Papua New Guinea which provides Conic with significant attributable nickel and cobalt production. In addition, Conic manages a portfolio of 11 nickel and cobalt royalties on advanced/development and exploration projects in Canada and Australia. Conic will continue to invest in a battery metals-focused portfolio of streams, royalties and direct interests in mineral properties containing battery metals.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of applicable Canadian securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to: statements with respect to the business; and, assets of Conic and its strategy going forward; statements with respect to the operational and financial results; statements with respect to the prospects of nickel and cobalt in the global electrification of vehicles; and statements with respect to the business and assets of Conic and its strategy going forward. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, most of which are beyond the Company’s control. Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements.
The forward-looking statements contained herein are made as of the date of this release and, other than as required by applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.
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. No securities regulatory authority has either approved or disapproved of the contents of this news release.