Posted on 10 Apr 2023
Glencore International AG (Glencore) has confirmed it will finance the Kolosori nickel project in the Solomon Islands, a flagship project of Australian miner Pacific Nickel Mines, Kallanish notes.
Glencore has provided a letter of commitment confirming receipt of its internal management approvals to execute an up to $22 million loan facility agreement and amended sales agreement for the project.
The funds raised through this arrangement with Glencore are expected to be sufficient to meet the pre-production funding requirements of the project.
Pacific Nickel Mines chief executive officer Geoff Hiller says the funding is an important milestone for the development of the project.
“The company anticipates that it will be in a position to effect an initial drawdown of $3m once documentation has been completed. This will enable the company to continue the current development works,” he says.
He also says the company believes that the project holds relatively low technical risk, and that capital payback will be achieved in under 12 months.
The Kolosori project is expected to ramp up to full production of around 1.5m wet metric tonnes/year of direct shipping nickel ore during 2023.
Source:Kallanish
