US Nickel signs letter of intent with China Minmetals for two nickel targets in USA
US Nickel (ASX: USN), formerly Lumacom Ltd (ASX: LUM) has today inked a Letter of Intent with a Minerals and Metals Group US entity on the Mid-Continent Project located in Minnesota, USA.
The Mid-Continent Project is located in southwestern Minnesota and consists of two target areas, Cottonwood and Renville West, totalling 17.8 square kilometres.
The exploration target at Mid-Continent is magmatic nickel-copper and PGE sulphide deposits.
Interestingly, the project area is located near the southern margin of the Superior Craton, which has several world class nickel sulphide deposits, as its neighbours along or near its margins in Canada (eg. Thompson, Raglan, Voisey’s Bay).
Recent nickel sulphide discoveries at Lakeview (Minnestora) and Eagle (Michigan) are located in the same general region.
MMG is the Australian headquartered base metals subsidiary of China Minmetals Corporation.
MMG will spend up to USD $4million over four years and carry US Nickel through to a Bankable Feasibility Study plus make a payment of US$100,000 upon signing the proposed Joint Venture to Lumacom Ltd.
US Nickel managing director Alex Hewlett said the Agreement heralded an opportunity for the prospect to be aggressively explored with the assistance of a mining company with significant base-metal experience, already operating in the North American region.
The Company was looking to build a strong strategic relationship with MMG.
MMG will earn a 70% stake in the Mid-Continent project currently owned 100% by US Nickel Ltd and a further 5% should it free carry US Nickel through a Bankable Feasibility Study.
US Nickel (Lumacom) will soon lodge a prospectus to be re-listed on the ASX and undertake a consolidation of capital.
