Posted on 21 Apr 2023
Australian miner Pacific Nickel Mines confirms that formal loan documentation and an amended sales agreement have now been signed with Glencore International AG (Glencore) in respect of a loan facility of up to $22 million for the Kolosori nickel project in Solomon Islands.
The funds raised through these arrangements with Glencore are expected to be sufficient to meet the pre-production funding requirements of the project, Kallanish notes.
“The company anticipates that it will be in a position to effect an initial drawdown of $3 million once the initial conditions precedent have been satisfied,” Pacific Nickel chief executive officer Geoff Hiller says.
According to him, this drawdown is expected to be imminent and will enable the company to materially advance the current development works.
“The balance of the facility is expected to be drawn down in due course to fund the ongoing development of the Kolosori nickel project.
He also says the company believes that capital payback will be achieved in under 12 months.
In a separate announcement, Pacific Nickel says it is now advancing key contracts to develop and operate the Kolosori nickel project, with a view to commencing operations as soon as possible.
According to Hiller, the project has advanced further into the execution stage with critical path construction work now underway.
He also says a review of the development strategy has identified ore blocks which can potentially be mined earlier than assumed in the definitive feasibility study (DFS).
These ore blocks lie adjacent to the proposed haul road and early mining of these ore blocks is expected to enhance the project’s economics.
Source:Kallanish
