Winshear Enters Option Agreement on the Portsoy Nickel - Copper - Cobalt Project, Scotland
Executive Summary
- Winshear Gold Corp. entered an arms‑length earn‑in agreement with Peak Nickel Ltd. to acquire a 100% interest in the 250 km² Portsoy nickel‑copper‑cobalt project in Scotland, subject to TSX‑V approval.
- To earn the interest, Winshear must (i) complete 1,000 m of drilling and EM surveying plus metallurgical testwork, (ii) spend £3 million over five years (minimum £300k per year), and (iii) issue a total of 6.5 M common shares to Peak Nickel on specified anniversaries.
- The agreement includes a 1% NSR royalty (capped at £10 M) retained by Peak Nickel, with additional upside provisions if the project is sold or the agreement assigned.
Key Details
- Agreement Terms
- Earn‑in triggers: 1,000 m of drilling + downhole EM survey; £3 million spend over five years (≥£300k/yr).
- Share issuance to Peak Nickel: 1 M shares each on the 1st–4th anniversary of TSX‑V approval; 2.5 M shares on the 5th anniversary (total 6.5 M shares).
- Royalty: 1% Net Smelter Returns (NSR) royalty to Peak Nickel, capped at £10 million.
- Sale provision: If Winshear sells the Portsoy Project after earn‑in, Peak Nickel receives 10% of cash/share consideration (capped at £10 M).
- Assignment provision: If agreement is assigned before earn‑in completion, Peak retains uncapped 1% NSR royalty.
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Right of first refusal for Winshear on any royalty sale by Peak Nickel.
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Financial Considerations
- Initial payment to Peak Nickel upon execution: £65,000 (additional £100,000 payable to assume contractor role).
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Total spend commitment: £3 million over five years.
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Project Overview & Historical Drilling
- Location: Portsoy Project, Aberdeenshire, NE Scotland (~60 km NW of Aberdeen).
- Historic EVL drilling (1970s): 26 holes, 4,115 m; up to 12.6 m @ 1.1% Ni, 0.33% Cu (no Co assay).
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Peak Nickel drilling (2022‑2023): 24 holes, 3,700 m; confirmed Ni‑Cu‑Co mineralisation and expanded target extents.
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Selected Intercepts from Peak Nickel Drilling (Ni %, Cu %, Co ppm)
- Hole RBD001: 12.48 m @ 0.63% Ni, 0.54% Cu, 403 ppm Co (incl. 6.00 m @ 0.96% Ni, 0.73% Cu, 601 ppm Co).
- Hole RBD002: 35.40 m @ 0.71% Ni, 0.30% Cu, 473 ppm Co (incl. 12.00 m @ 1.42% Ni, 0.54% Cu, 929 ppm Co).
- Hole RBD004: 12.26 m @ 1.02% Ni, 0.83% Cu, 633 ppm Co (incl. 5.97 m @ 1.92% Ni, 1.50% Cu, 1,197 ppm Co).
- Hole RBD009: 13.79 m @ 1.39% Ni, 0.53% Cu, 728 ppm Co (incl. 5.39 m @ 2.04% Ni, 0.56% Cu, 1,013 ppm Co).
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Hole RBD018: 2.00 m @ 1.54% Ni, 0.93% Cu, 735 ppm Co.
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Planned 2025 Work Programme (post‑TSX‑V approval)
- Immediate commencement of ≥1,000 m drill program with downhole EM surveying.
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Initiation of metallurgical testwork to define optimal processing routes for Ni‑Cu‑Co sulphide mineralisation.
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Contractor Arrangements
- Peak Nickel serves as designated contractor for the first two years; Winshear may assume this role by paying £100,000 to Peak Nickel.
Notable Quotes
“The Portsoy Project represents a tremendous opportunity to develop a new nickel‑copper‑cobalt project in Scotland… We have only scratched the surface of this system, and look forward to commencing the next drill programme as soon as possible.” – Richard Williams, CEO, Winshear Gold Corp.