First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21)
("First Atlantic" or the "Company") is pleased to announce that it
has entered into an agreement to acquire a 100% interest in the
RPM-South claims (the "Claims") located immediately south of the
recent discovery at the RPM Zone (See Figure 1), which is part of
the 30 kilometer nickel trend at the Atlantic Nickel project (the
"Atlantic Nickel Project" or the "Project") in Newfoundland. Future
drill programs will aim to test for mineralization in all
directions, including at depth, from the new discovery at the RPM
target zone, which is no longer constrained by proximity to project
boundaries. The Claims are strategically important for future
project infrastructure and mine development, while also being
prospective as they have the potential to host awaruite nickel
mineralization extending southward from the RPM Zone at depth.
Highlights:
-
Strategic Acquisition: The Company will acquire
licence #038152M (which consists of 12 claims), located immediately
south of the RPM Zone. This strategic acquisition is necessary for
future project infrastructure and development. The new licence also
enables the investigation of the potential southward continuation
of awaruite nickel mineralization at depth within the RPM
Zone.
- Phase 1
Drilling Update: Phase 1 Drill core processing has resumed
following successful relocation to long term drill core and
processing facility.
- Assays
& Metallurgical Testing: The initial Phase 1 drill
holes have been submitted for assays, while others are currently
being processed. Metallurgical testing will commence upon receipt
of the assay results.
- Phase 2
Drilling Plans: Phase 2 drill permits were submitted on
November 27, 2024, including plans for a direct vehicle access road
into the RPM and Chrome Pond Zones.
-
Mineralization Expansion Potential: The RPM Zone
remains open for drilling in all directions, with mineralization
appearing more substantial to the east and showing potential for
further expansion along strike.
- No
Private Placement Financing: The Company is not currently
conducting or planning any private placement equity financings.
First Atlantic has not engaged any third parties to solicit on its
behalf. Any such inquiries are unauthorized and should be
directed to the Company.
For further information, questions, or investor inquiries,
please contact Rob Guzman at First
Atlantic Nickel by phone at +1 844 592
6337 or via email at rob@fanickel.com
The Claims will provide First Atlantic with a
contiguous land package in the immediate vicinity of the RPM Zone.
The RPM Zone extends south to the previous claim boundary and could
potentially continue south into the newly acquired claims. This
makes the acquisition a key asset for future project development
and infrastructure, as it lies in close proximity to known
mineralization boundaries. Further expansion drilling will focus on
defining the extent of mineralization and testing for depth, as
well as east, north and south extensions of the new discovery at
the RPM target zone. This strategic acquisition enables
comprehensive exploration and development planning as the Project
advances. The Company remains dedicated to realizing the full
potential of the Atlantic Nickel Project through robust exploration
and aggressive drilling campaigns.
Phase 2 Drill Program:
Phase 2 drilling will focus on targeting deeper
mineralization and extending the strike length and width of the RPM
Zone. With permits submitted on November 27, 2024, the Company
plans to explore targets along the entire 30 km ophiolite trend,
seeking sulfur-free nickel-alloy, awaruite. The Phase 2 program
aims to delineate and expand known mineralization zones,
potentially connecting the RPM and Chrome Pond areas, which are
believed to represent a significant target for future resource
drilling. The RPM Zone remains open in all directions, and the
Company anticipates providing updates on Phase 1 step-out drilling
to the north, with further updates expected shortly.
As the Company awaits drill permits, it is
currently planning the development of a drill access trail to the
RPM Zone for winter drilling. This access trail is included in the
same permit application submitted for Phase 2 drill permits.
Efforts are also underway to relocate the camp to support upcoming
drilling activities. The Company plans to utilize the newly
established drill core processing and storage facility in Grand
Falls-Windsor, Newfoundland, for this program. These logistical
preparations will ensure the smooth and efficient execution of the
Phase 2 drilling campaign. Exploration will continue to test the 30
km nickel trend, with additional holes being drilled as the Company
expands its operations northward.
Figure 1: Claim location map showing RPM-South
claims to be 100% purchased by First Atlantic. The Claims are
located adjacent to recent discoveries at the RPM Zone and form a
critical piece of the Company's long term Atlantic Nickel
development plans.
RPM Zone Geology: The RPM Zone
is situated within the expansive 30 km highly magnetic ultramafic
ophiolite belt, approximately 10 km south of the Super Gulp target
and 25 km south of the historic drilling at Atlantic Lake, where
significant mineralization was previously encountered in drill
core. This zone is characterized by wide intervals of heavily
sheared and serpentinized peridotite ultramafic rock. The
serpentinized peridotite within the drilled areas is heavily broken
due to extensive shearing and faulting, resulting from its vertical
position within a subduction zone and vertical emplacement rather
than being displaced and preserved as a massif. The vertical
orientation of the crustal-scale ophiolite is highly favorable,
absorbing additional structural breakage and increasing fluid
porosity for serpentinization. This vertical orientation also
provides significant depth potential for mineralized zones, where
the nickel mineralization could extend to depths of 1 km or more,
allowing ample room for depth extensions.
Awaruite (Nickel-iron alloy Ni₂Fe,
Ni₃Fe)
Awaruite, a naturally occurring sulfur-free
nickel-iron alloy composed of Ni₃Fe or Ni₂Fe with approximately
~75% nickel content, offers a proven and environmentally safer
solution to enhance the resilience and security of North America's
domestic critical minerals supply chain. Unlike conventional nickel
sources, awaruite can be processed into high-grade concentrates
exceeding 60% nickel content through magnetic processing and simple
floatation without the need for smelting, roasting, or
high-pressure acid leaching1. Beginning in 2025, the US Inflation
Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit
mandates that eligible clean vehicles must not contain any critical
minerals processed by foreign entities of concern (FEOC)2. These
entities include Russia and China, which currently dominate the
global nickel smelting industry. Awaruite's smelter-free processing
approach could potentially help North American manufacturers meet
the IRA's stringent critical mineral requirements and reduce
dependence on FEOCs for nickel processing.
The U.S. Geological Survey (USGS) highlighted
awaruite's potential, stating, "The development of awaruite
deposits in other parts of Canada may help alleviate any prolonged
shortage of nickel concentrate. Awaruite, a natural iron-nickel
alloy, is much easier to concentrate than pentlandite, the
principal sulfide of nickel"3. Awaruite's unique properties enable
cleaner and safer processing compared to conventional sulfide and
laterite nickel sources, which often involve smelting, roasting, or
high-pressure acid leaching that can release toxic sulfur dioxide,
generate hazardous waste, and lead to acid mine drainage.
Awaruite's simpler processing, facilitated by its amenability to
magnetic processing and lack of sulfur, eliminates these harmful
methods, reducing greenhouse gas emissions and risks associated
with toxic chemical release, addressing concerns about the large
carbon footprint and toxic emissions linked to nickel refining.
Figure 2: Quote from USGS on Awaruite Deposits
in Canada
The development of awaruite resources is
crucial, given China's control in the global nickel market. Chinese
companies refine and smelt 68% to 80% of the world's nickel4 and
control an estimated 84% of Indonesia's nickel output, the largest
worldwide supply5. Awaruite is a cleaner source of nickel that
reduces dependence on foreign processing controlled by China,
leading to a more secure and reliable supply for North America's
stainless steel and electric vehicle industries.
Acquisition Terms:
The Company entered into an asset purchase
agreement dated December 11, 2024 (the "Purchase Agreement”) with a
group of arm’s length parties (the “Vendors”),
whereby the Vendors agreed to sell to the Company a 100% interest
in and to the Claims. The Company has agreed to pay cash
consideration of $20,000 and issue 750,000 common shares to the
Vendors at a deemed price of $0.1425 per share (the “Consideration
Shares”). The Consideration Shares will be subject to voluntary
escrow and released to the Vendors over a period of 30 months from
issuance. The Claims are subject to a 2% NSR royalty, with the
Company retaining the right to buy back half the royalty (1% NSR)
for $1M at any time prior to the commencement of commercial
production at the property.
The Purchase Agreement and the issuance of the
Consideration Shares are subject to approval by the TSX Venture
Exchange. All security issuances will be subject to a statutory
hold period of 4 months and one day from issuance in accordance
with Canadian securities laws. No finders’ fees will be paid in
connection with this arm’s length Purchase Agreement.
Investor
Information
The Company's common shares trade on the TSX
Venture Exchange under the symbol "FAN", the
American OTCQB Exchange under the symbol “FANCF”
and on several German exchanges, including Frankfurt and Tradegate,
under the symbol "P21".
Investors can get updates about First Atlantic
by signing up to receive news via email and SMS text at
www.fanickel.com. Stay connected and learn more by following us on
these social media platforms:
https://x.com/FirstAtlanticNihttps://www.facebook.com/firstatlanticnickelhttps://www.linkedin.com/company/firstatlanticnickel/
FOR MORE INFORMATION:First
Atlantic Investor RelationsRobert GuzmanTel: +1 844 592
6337rob@fanickel.com
Disclosure
Adrian Smith, P.Geo., is a qualified person as
defined by NI 43-101. The qualified person is a member in good
standing of the Professional Engineers and Geoscientists
Newfoundland and Labrador (PEGNL) and is a registered professional
geoscientist (P.Geo.). Mr. Smith has reviewed and approved the
technical information disclosed herein.
The Company has not independently verified the
historic samples reported in this release but has received data
from the previous property owners and from the Government of
Newfoundland and Labrador’s online database.
About First Atlantic Nickel
Corp.
First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB:
FANCF) (FSE: P21) is a Canadian mineral exploration company
developing the 100%-owned Atlantic Nickel Project, a large-scale
nickel project strategically located near existing infrastructure
in Newfoundland, Canada. The Project's nickel occurs as awaruite, a
natural nickel-iron alloy containing approximately 75% nickel with
no-sulfur and no-sulfides. Awaruite's properties allow for
smelter-free magnetic separation and concentration, which could
strengthen North America's critical minerals supply chain by
reducing foreign dependence on nickel smelting. This aligns with
new US Electric Vehicle US IRA requirements, which stipulate that
beginning in 2025, an eligible clean vehicle may not contain any
critical minerals processed by a FEOC (Foreign Entities Of
Concern)6.
First Atlantic aims to be a key input of a
secure and reliable North American critical minerals supply chain
for the stainless steel and electric vehicle industries in the USA
and Canada. The company is positioned to meet the growing demand
for responsibly sourced nickel that complies with the critical
mineral requirements for eligible clean vehicles under the US IRA.
With its commitment to responsible practices and experienced team,
First Atlantic is poised to contribute significantly to the nickel
industry's future, supporting the transition to a cleaner energy
landscape. This mission gained importance when the US added nickel
to its critical minerals list in 2022, recognizing it as a non-fuel
mineral essential to economic and national security with a supply
chain vulnerable to disruption.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking statements:
This news release may include "forward-looking
information" under applicable Canadian securities legislation. Such
forward-looking information reflects management's current beliefs
and are based on a number of estimates and/or assumptions made by
and information currently available to the Company that, while
considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results
and future events to differ materially from those expressed or
implied by such forward-looking information. Forward looking
information in this news release includes, but is not limited to,
expectations regarding the timing, scope, and results from the 2024
work and drilling program; future project developments; the
Company’s objectives, goals or future plans, statements, and
estimates of market conditions, the Company’s plans to acquire a
100% interest in the Claims pursuant to the Purchase Agreement, the
anticipated issuance of the Consideration Shares and receipt of TSX
Venture Exchange approval. Readers are cautioned that such
forward-looking information are neither promises nor guarantees and
are subject to known and unknown risks and uncertainties including,
but not limited to, general business, economic, competitive,
political and social uncertainties, uncertain and volatile equity
and capital markets, lack of available capital, actual results of
exploration activities, environmental risks, future prices of base
and other metals, operating risks, accidents, labour issues, delays
in obtaining governmental approvals and permits, and other risks in
the mining industry. Additional factors and risks including
various risk factors discussed in the Company’s disclosure
documents which can be found under the Company’s profile on
http://www.sedarplus.ca. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
The Company is presently an exploration stage
company. Exploration is highly speculative in nature, involves many
risks, requires substantial expenditures, and may not result in the
discovery of mineral deposits that can be mined profitably.
Furthermore, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such
forward-looking statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements.
___________________________________
1 https://fpxnickel.com/projects-overview/what-is-awaruite/2
https://home.treasury.gov/news/press-releases/jy19393
https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf4
https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf5
https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/6
https://home.treasury.gov/news/press-releases/jy1939
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/7fa1bbeb-d7d5-4cea-81b0-88e6a3ed12ec
https://www.globenewswire.com/NewsRoom/AttachmentNg/c0aa7ed7-7508-4aac-9ea4-1dada57bbe30
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