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Saskatoon, Saskatchewan--(Newsfile Corp. - August 13, 2024) - 1844 Resource Inc. (TSXV: EFF) (the "Company" or "1844") is pleased to announce that it has entered into a letter of intent with Nickel North Corp (TSXV: NNX) to earn an interest in the Hawkridge Project. With the terms agreed to, both parties are now working to finalize the terms of the formal and binding option agreements, which will consist of two separate option agreements ("Option 1", "Option 2" and collectively the "Option").
Mr. Sylvain Laberge, President and CEO of the Company commented: "We are pleased to have renegotiated new terms and conditions with the management of Nickel North. 1844 remains steadfast in our belief that the Hawk Ridge project can become a major strategic metals development in the Province of Quebec."
The Option terms are as follows:
Option 1
| Event | Cash Payment | Shares issued | Exploration | Interest Earned (cumulative)* |
| Option signing | $12,000 | - | - | - |
| TSX-V approval | $200,000 | 5,000,000 | - | 10% |
| 1st anniversary | $250,000 | 3,000,000 | $500,000 | 20% |
| 2nd anniversary | $250,000 | 3,000,000 | $1,000,000 | 30% |
| 3rd anniversary | $250,000 | 3,000,000 | $1,500,000 | 40% |
| 4th anniversary | $250,000 | 3,000,000 | $1,500,000 | 60% |
| 5th anniversary | $300,000 | 4,000,000 | $1,500,000 | 80% |
| Total | $1,512,000 | 21,000,000 | $6,000,000 | 80% |
* If 1844 does not complete the full option, the interest in the property will be forfeited in exchange for common shares of NNX at a monetary value to be determined in the final agreement divided by the 30-day VWAP of NNX from all exchanges.
Option2
1844 shall retain the sole and exclusive option to acquire the remaining 20% interest in the Hawk Ridge project in exchange for a one-time payment of CAD$2,000,000.
If Option Two is exercised, NNX shall retain a 2% Net Smelter Returns Royalty, of which 50% may be retired by 1844 at any time in exchange for a one-time payment of CAD$1,000,000.
Exclusivity
NNX agrees to grant exclusivity over negotiations and potential transactions involving the Hawk Ridge Property for a period of 90 days from the signing of this letter of intent.
Definitive Agreements
1844 and NNX commit to completing definitive agreements covering the Option within 45-days of the execution of this Letter of Intent.
Target Closing Date
The target closing date of the definitive option agreements shall be September 30, 2024, with a mutually agreed 30-day extension, should it be required.
About 1844 Resources Inc.: 1844 is an exploration company with a focus in strategic and energetic metals and underexplored regions "Gaspé, Nunavik Québec." With a dedicated management team, the Company's goal is to create shareholder value through the discovery of new deposits.