Ann: Term sheet executed for spin out of nickel assets, page-24

Why would MLX be paying to dispose of assets that have had many millions spent on them ?

Here is the part of the announcement worth another read.

In addition to receiving the MLX IPO Shares, the consideration payable by NICO to Metals X for the purchase of the Nickel Assets will be $5,000,000, to be satisfied by the issue to Metals X of: (a) 25,000,000 shares in NICO at a deemed issue price of $0.20 per share; and (b) 25,000,000 options to subscribe for shares in NICO, exercisable at $0.25 each, expiring 3 years after grant. Immediately prior to, or simultaneously with, the IPO, Metals X proposes to conduct an in specie distribution of 25,000,000 shares in NICO it receives as sale consideration to eligible Metals X shareholders, being approximately 35% of NICO’s total issued share capital on a post-IPO undiluted basis, subject to the approval of Metals X shareholders (Distribution). Metals X will retain the remainder of the NICO shares it obtains under the Transaction (being the MLX IPO Shares and the options) and will directly hold approximately 29% of NICO’s total issued share capital on a post-IPO undiluted basis.