Nexcel Metals Expands Burnt Hill Tungsten Project Through Acquisition of Strategic Fitzgerald Claims

Executive Summary

• Nexcel Metals Corp. has entered into an option agreement to acquire a 100% interest in the Fitzgerald Claims, a 500-hectare mineral claim package located within the Burnt Hill Tungsten Project in New Brunswick.
• The acquisition consolidates Nexcel's land package by eliminating a third-party inlier claim block, strategically positioning the company to better explore known mineralized trends and historical occurrences in the district.
• The total consideration for the option includes $100,000 in cash and 225,000 shares of Nexcel common stock, payable in installments over a 36-month period.

Key Details

• Target Property: Fitzgerald Claims, comprising 25 mineral claim units totaling 500 hectares.
• Location: Immediately north of Nexcel’s existing Burnt Hill Tungsten Project, contiguous with existing claim blocks.
• Strategic Value: Eliminates a third-party inlier; provides exposure to historical occurrences including Burnt Hill Tungsten, Lower Burnt Hill Brook, Clearwater Brook, Molasses Brook, Trout Brook, and the Tin Hill occurrence.
• Consideration Structure:
  • Cash: Aggregate $100,000, paid in four tranches of $25,000 each.
    • Tranche 1: $25,000 within 7 days of Effective Date.
    • Tranche 2: $25,000 within 12 months of Effective Date.
    • Tranche 3: $25,000 within 24 months of Effective Date.
    • Tranche 4: $25,000 within 36 months of Effective Date.
  • Shares: Aggregate 225,000 common shares, paid in four tranches.
    • Tranche 1: 25,000 shares within 7 days of Effective Date.
    • Tranche 2: 25,000 shares within 12 months of Effective Date.
    • Tranche 3: 25,000 shares within 24 months of Effective Date.
    • Tranche 4: 150,000 shares within 36 months of Effective Date.
• Geological Context: Region known for tungsten, tin, molybdenum, and beryllium mineralization.
• Qualified Person: Francis R. Newton, P.Geo., reviewed and approved the scientific and technical information.

Notable Quotes

• Hugh Rogers, CEO: "This acquisition is significant not only because it adds prospective ground to our portfolio, but because it strengthens our footprint over the broader Burnt Hill district... By securing these claims, we have removed a third-party landholding from within our area of interest, expanded our exposure to known mineralized trends and further enhanced our ability to pursue a district-scale exploration strategy."
• Hugh Rogers, CEO: "The acquisition provides greater flexibility for future exploration programs, strengthens our long-term development optionality and increases our exposure to potential new discoveries within the Burnt Hill camp."