Flying Nickel Mining Corp. [FLYN-TSXV, FLYNF-OTCQB] shares rallied Monday after the company said it has signed a binding letter of intent in which it proposes to sell its Minago Nickel project in Manitoba and related assets to the Norway House Cree Nation (NHCN).
The shares jumped 12.5% or $0.01 to $0.09 on volume of 248,910. The shares currently trade in a 52-week range of 15.5 cents and $0.05.
In an April, 2024, press release the company announced an updated mineral resource estimate, which includes a measured an indicated resource of 125,700 ounces of platinum, 279,330 ounces of palladium, and 689.5 million pounds of nickel.
Under the proposed transaction, NHCN will surrender all of its shares in Flying Nickel immediately prior to closing. In a press release Monday, Flying Nickel said the total consideration will either be payment of $7.3 million in cash and 31.01 million shares representing 35.2% of Flying Nickel, or $8 million cash and 17.6 million shares, amounting to 19.9%.
Norway House Cree Nation is a dynamic First Nation community in northern Manitoba, with 8,700 members, and located 800 kilometres north of Winnipeg. NHCN serves as an economic hub for neighbouring communities.
NHCN is also part of a group of concerned shareholders who have been opposed to a proposal that would see the Flying Nickel acquiring all the issued and outstanding shares of Nevada Vanadium Mining Corp. by way of a court-approved plan of arrangement. The group, which includes Blackstone Minerals Ltd., Sparta AG, collectively own 35.5% of Flying Nickel.
Nevada Vanadium’s (formerly 1324825 B.C. Ltd.) key asset is the 100%-owned Gibellini vanadium project, a proposed open pit, heap leach operation located in the Battle Mountain district of Nevada. The company’s shares are not listed for trading on any stock exchange.
The concerned shareholders were also opposed to three of the four board nominees proposed by Flying Nickel. The Nevada Vanadium takeover and Flying Nickel slate were both scheduled to be considered at the company’s annual general and special meeting on July 10, 2024. But the meeting has since been postponed until tomorrow (July 23, 2024).
Flying Nickel has said the meeting was postponed in response to discussions between the company and the concerned shareholder group. In a press release on July 9, 2024, Flying Nickel said it is working with the concerned shareholders towards finding an amicable agreement for all parties.
On Monday, the company said Blackstone, Sparta and NHCN (the concerned shareholders) will support Flying Nickel’s management at tomorrow’s annual meeting and will vote in favour of the proposed takeover of Nevada Vanadium Mining. They are also scheduled to vote in favour of the four board nominees proposed by Flying Nickel.
Flying Nickel was spun out by Silver Elephant Mining Corp. [ELEF-TSX, SILEF-OTCQX, 1P2N]. Oracle Commodity Holding Corp. (formerly Battery Metals Royalties Corp.), a unit of Silver Elephant Mining, owns 45.9% of the issued and outstanding shares of Nevada Vanadium and approximately 35.1% of the issued and outstanding shares of Flying Nickel.
