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TopTung makes a play for Canadian neighbour

19th November 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed junior TopTung has moved to acquire Canadian Nickel Corporation (CNC) to more than double its landholding in Quebec.

CNC has previously entered into conditional agreements to acquire three advanced nickel/copper sulphide projects that are in the same district as TopTung’s own Alotta project.

The Midrim and LaForce projects are currently owned by ASX-listed Meteoric Resources, while the Lac Kelly project is owned by TSX-listed Globex Mining Enterprises.

Under the terms of the conditional sales and purchase agreement, TopTung will issue CNC shareholders with 15.75-million fully paid ordinary shares in the company, while TopTung would also issue Meteoric with 31.25-million shares, for the acquisition of the Midrim and LaForce projects.

Under the Globex option, CNC could acquire the Lac Kelly project through a number of cash and share payments, and by spending C$2-million on exploration and development of the project.

Globex will be paid an initial C$50 000 and will be issued C$60 000 worth of TopTung shares by no later than September 25, 2019, and a further C$100 000 in cash and C$100 000 worth of shares in September 2020. A further C$250 000 cash payment and C$250 000 share payment will be due by September 2021.

CNC will also pay Globex a 2% gross metal royalty on all revenue received from metal sales from Lac Kelly.

TopTung told shareholders on Monday that the project acquisition was a strategic fit with the Zeus acquisition announced earlier this year, and where the company recently completed a nine-hole diamond drilling programme at the Alotta project.

The CNC acquisition more than doubles TopTung’s foothold in the area and consolidates its position in the region, making it the first time the project areas have been consolidated since 2005, which is when Aurora Platinum was taken over by FNX Mining, and the projects were disbursed to separate owners.

The CNC acquisition is subject to a number of conditions, including TopTung and Globex agreeing to certain variations of the Globex option, as well as all the conditions to the CNC-Meteoric agreement being satisfied or waived.

TopTung will also have to complete a positive due diligence on CNC, and will need to obtain regulatory and shareholder approvals.

Edited by Creamer Media Reporter

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