Cornish Metals Inc on Monday said that it has entered a binding letter of intent with Northera Resources Ltd for the sale of its interest in the Nickel King and Opescal Lake properties.

According to the mineral exploration company, which has projects in the UK and North America, the sale is for a total consideration of up to C$8 million, around £4.6 million.

The Nickel King property is located in the Northwest Territories, 135 kilometres northeast of Stony Rapids, Saskatchewan.

Under the terms of the agreement, Northera will pay Cornish Metals a non-refundable cash payment of C$100,000 within five days of signing.

Within 95 days, Cornish Metals will then transfer the legal and beneficial title to the mining leases and mineral claims, and Northera will pay C$900,000.

Upon completion of a go public transaction by Northera, resulting in a listing of securities on the TSX Venture Exchange, or other stock exchange, Northera will issue to Cornish Metals common shares in the capital of Northera, having an aggregate market value equal to C$7 million.

‘The sale of Nickel King aligns with Cornish Metals’ objective to focus its efforts on advancing its 100% owned and fully permitted South Crofty tin project, in the UK, towards a construction decision. Cornish Metals will retain exposure to any future exploration success at Nickel King, as Northera works to recommence exploration activities at the Nickel King Property which comprises approximately 4,000 hectares in mining leases and mineral claims in Canada’s Northwest Territories,’ said Interim Chief Executive Officer Ken Armstrong.

Shares in Cornish Metals were trading 5.9% higher at 6.88 pence each in London on Monday afternoon.

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