CaNickel Mining has signed an option agreement with Cobalt One Energy Corporation and Blackstone Minerals Ltd., in which Cobalt One recieved the exclusive right and option for a 12-month period to purchase CaNickel’s 100% owned Bucko Lake Mine project for up to $80 million.

“After every effort was made to restructure CaNickel’s corporate debt with our creditor, it was determined that the most viable path forward for the company was to sell the Bucko Lake Mine to a motivated buyer with a strong balance sheet that can advance the project,” stated Shirley Anthony, Chief Executive Officer of CaNickel. “To that end, we are pleased to have signed an Option Agreement with Cobalt One, which is owned by Blackstone Minerals, a dynamic ASX-listed, nickel-focused resource company headquartered in Perth, Australia. Their impressive board and highly experienced executive team have exhibited strong conviction in the technical merits of the Bucko Lake Mine, and we are confident they will have the resources to complete the purchase of the project in the coming year.”

Under the Option Agreement, along with a non-refundable payment of approximately $1.12 million to CaNickel, Cobalt One and Blackstone Minerals have a 12-month period (subject to extension from time to time) to purchase the Bucko Lake project, in accordance with the settled terms of the asset purchase agreement. Under these terms, Cobalt One and Blackstone Minerals will agree to acquire all assets relating to the project and several known historical satellite deposits for up to $80 million.

The Bucko Lake Mine is located just outside the town of Wabowden, MB, 106 km southwest of Thompson and 640 km north of Winnipeg. According to CaNickel, the mine is accessible from Provincial Highway 6 via a network of all-weather gravel roads and seasonal trails. From 2009 to 2012, the mine produced 6.9 million pounds of nickel before being put on care and maintenance due to low nickel prices.