Alaska Energy Metals Closes Quebec Nickel-Copper Project Acquisition, Adds $2.8 Million in Cash

Transaction Completed

Alaska Energy Metals Corporation said it has closed its previously announced acquisition of 1413336 B.C. Ltd., giving it 100% ownership of the company that holds the Angliers-Belleterre nickel-copper project in western Quebec. The deal was completed under a Share Exchange Agreement dated November 7, 2023.

The target company’s assets include approximately $2.8 million in cash, adding balance-sheet value alongside the mineral property.

Consideration and Security Terms

In exchange for the acquisition, Alaska Energy Metals issued 31,827,720 AEMC shares and 4,105,958 AEMC warrants to the security holders of 1413336 B.C. Ltd. The deemed price of the consideration shares was $0.315 per share.

The warrants are exercisable at $0.80 for two years from issuance. No finder’s fees are payable for the transaction.

Exchange Approval and Closing Conditions

The TSX Venture Exchange granted conditional approval for the transaction and permitted closing, subject to the company’s undertaking not to file the National Instrument 43-101 Technical Report on SEDAR+ until remaining TSX-V comments are resolved.

A total of 24,000,001 consideration shares are subject to a three-year escrow hold period, while 7,827,719 consideration shares are subject to a 60-day contractual hold period.

Project Scale and Geological Setting

The Angliers property spans 454 claims covering 24,182.64 hectares in the Temiscamingue region of western Quebec near the Ontario border. Access is supported by paved highways and gravel roads.

The property is underlain by komatiitic ultramafic flow rocks and differentiated gabbro rocks in a regional setting interpreted as a mantle plume. Management said the geology is comparable to the Kambalda nickel district in Australia, a reference point for high-grade nickel sulfide systems.

Exploration Upside and Nearby Mineralization

The company said nickel prospects on adjacent claims, including the Midrim nickel prospect, appear to trend onto the Angliers-Belleterre project. Quebec government work has also documented a six-kilometre-long belt of nickel-enriched rocks on the property.

Airborne magnetic surveys suggest the stratigraphy hosting nearby prospects may extend onto the claims under deeper overburden, supporting the case for follow-up geophysics and drill targeting.

Royalty, Financing and Strategic Benefits

The property is subject to a 2.5% net smelter returns production royalty, which can be reduced to 1.5% by paying the royalty holders $1.5 million.

Management said owning a Quebec project should improve access to flow-through capital and make the company eligible for exploration expenditure rebates from the Quebec government, potentially lowering the cost of advancing the asset.

Next Steps for Exploration

Alaska Energy Metals said it will compile public data, then conduct targeted geophysical surveys to develop drill targets. The company also said the project is prospective for gold and polymetallic volcanogenic massive sulfide deposits in addition to magmatic nickel-copper mineralization.

President and CEO Gregory Beischer said the area’s geology and nearby prospects make it a compelling target for a modern exploration approach.

This is an area with which I am highly familiar, having studied it while stationed in Quebec in the late 1990s during my first career with INCO, which at the time was the largest nickel producer globally. We were attracted by the ultramafic flow rocks and the geologic conditions permissive for high-grade massive sulfide deposits. There are some great prospects nearby that clearly show the nickel-copper sulfide deposit-forming processes were operative in the area. It will be exciting to take a modern exploration approach to this project.

Gregory Beischer, President & CEO