Update on acquisition of Zanzui Nickel Project in Tanzania released
Update on acquisition of Zanzui Nickel Project in Tanzania has been released. Archer Exploration Corp. entered into a securities exchange agreement with Echelon Minerals Ltd. (“Echelon”) and the shareholders of Echelon, pursuant to which it will acquire all of the issued and outstanding shares of Echelon (the “Echelon Transaction”). Echelon, through its subsidiaries, holds the Zanzui Nickel Project in Northern Tanzania and related mining and technical data.
“The nickel space is in the midst of a significant bull market driven by increasing demand for battery metals and jurisdictional risks around large sources of supply. The M&A market is heating up, and Archer is positioning itself to benefit through the acquisition of the Zanzui Nickel Project. Archer remains focused on not only closing the Zanzui transaction but building a significant landholding of high upside nickel sulphide properties,” Keith Bodnarchuk, Archer’s CEO, commented.
Purchase warrants
The Company also received proceeds of $705,000 from the exercise of 7,050,000 common share purchase warrants. The warrants were issued pursuant to the private placements of units that occurred on March 15, 2020 and July 1, 2020.
The warrants were exercisable at a price of $0.10 per share and had a term of two years from the date of issuance. As a result of the warrant exercises, the Company now has 32,583,248 common shares issued and outstanding.
Zanzui is located just 50km south of African Eagle’s flagship Dutwa nickel project, which has a total contained resource of 845,000 tonnes of nickel equivalent – 806,000t nickel & 30,000t cobalt – after a recent upgrade in June. At Zanzui the drilling results indicate significant nickel and cobalt intersections. The highlights ranged from 39-42m with nickel grades between 0.9 and 1.5%, and 27-36m with cobalt grades between 0.14 and 0.30%.
