Pacific Nickel still in talks with Glencore over Kolosori funding
Base metals company Pacific Nickel Mines on Tuesday requested a further extension of a voluntary suspension of its securities on the ASX, while the company continues its discussions regarding funding for the Kolosori nickel project in Solomon Islands.
Pacific Nickel said that discussions with project financier Glencore remained ongoing and that talks may continue for a further three weeks.
“The company is not in a position to provide an update on the status of the discussions,” Pacific Nickel said.
Glencore provided a $22-million secure loan facility for the development of the Kolosori project. Pacific Nickel has worked in close collaboration with Glencore since the commencement of production in late December 2023. By June 2024, Pacific Nickel had not yet started repayment of the Glencore loan as originally anticipated and Glencore has reserved its rights with regard to the project debt.
After a review of the Kolosori operation in July, the company and Glencore agreed that the best course of action in the short term was to cease operations and review the project in light of the operational issues and the weak nickel price outlook in the short to medium term.
By the end of August, the mining equipment had been demobilised from site.
During the December quarter, a local mining contactor was engaged to return to site to ensure compliance for the operation under its mining licence. One shipment of nickel ore was made late in the quarter to assist in the funding of those site activities.
In October last year, Geoff Hiller resigned as CEO and executive director of the company and in November, James Dean stepped down as director.
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