First Atlantic Nickel (FAN.V) reported Wednesday the initial closing of its agreement granting Core Critical Metals (CCMC.V) an option earn up to 80% of the Lucky Mike copper-silver-tungsten property in British Columbia.
Under the terms, Core Critical Metals must spend C$16 million on exploration and complete $650,000 in cash/share payments to acquire an 80% interest in two stages.
First Atlantic will retain a 20% participating interest, which will be carried until the delivery of a feasibility study on the project while retaining the rights to a mining royalty.
The project is subject to an underlying 2% net smelter returns royalty, which can be bough back for $1 million for up to five years.
The company said it plans to establish a special committee of independent directors to evaluate strategic alternatives on the project stake.