Pacific Nickel to sell Solomon Islands assets, exit Kolosori nickel project
Base metals company Pacific Nickel Mines has agreed to sell its Solomon Islands subsidiaries, including the Kolosori nickel project, to Green Rock for a nominal price of A$1, exiting the operation amid weak nickel market conditions.
Under a share sale and purchase agreement, Pacific Nickel’s unit Pacific Nickel International will sell 100% of Pacific Nickel Mines, which owns 80% of the Kolosori project and the Jejevo project. The remaining 20% of those assets are held by other shareholders who will retain their interests.
The sale is subject to several conditions, including shareholder and regulatory approvals, completion of a presale restructure, and execution of related agreements with financier Glencore International and contractors.
As part of the deal, Pacific Nickel has entered into a deed of release with Glencore, which financed the Kolosori project through a $22-million secured facility, later increased to $25-million. The release will discharge Pacific Nickel from any liabilities under the facility once the sale is completed.
The buyer will also pay Pacific Nickel a 1% royalty on nickel ore shipped from Kolosori, provided that monthly shipments exceed 170 000 t and benchmark prices on the Shanghai Metals Market average above $72/t.
Pacific Nickel said the decision followed a review of the Kolosori operation conducted with Glencore, which concluded that continuing operations was not viable given operational challenges and a weak nickel price outlook in the short to medium term.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
