08:33 AM EDT, 07/08/2024 (MT Newswires) -- Canada Nickel ( CNIKF ) said on Monday that it formed a joint venture with closely held Noble Mineral Exploration to consolidate northern Ontario mineral properties into a new company.

Canada Nickel ( CNIKF ) will hold an 80% stake in the spin-out firm, temporarily dubbed ExploreCo. It will control 1,989 claims near Timmins, Ontario, totaling 42,000 hectares. Noble will also transfer 832 mining claims and 291 mining patents near Canada Nickel's ( CNIKF ) Crawford project to the company for 162,000 shares.

"Today is the first of a set of transactions designed to unlock value from our significant asset portfolio," Chief Executive Mark Selby said in a release. "The creation of ExploreCo will facilitate the ability to realize the future value of these properties that are not currently recognized in Canada Nickel's ( CNIKF ) market value. This transaction also allows the company to consolidate the surface rights, remaining claims, and patents around the Crawford Nickel Sulfide Project to simplify the development of Crawford and our future projects."

The new company will initially be funded with $5 million from Canada Nickel ( CNIKF ) and led by Steve Balch, its current vice president of exploration. Future funding will be made on a pro rata basis; 80% from Canada Nickel ( CNIKF ) and 20% from Noble.

Canada Nickel ( CNIKF ) shares closed down $0.01 to $1.23 Friday on the TSX Venture Exchange.