Join our daily newsletter At The Bell to receive exclusive market insights
- Pacific Nickel Mines (PNM) has officially acquired an 80-per-cent interest in Kolosori Nickel (KNL) and its namesake nickel project in the Solomon Islands
- The Kolosori Nickel Project is an advanced stage direct shipping ore (DSO) nickel laterite project with excellent development potential
- Once Pacific is granted a mining licence, it will drill up to 224 holes and use the samples to provide metallurgical information needed to market a DSO product
- Company shares ended the day 4.35 per cent in the red to close at 4.4 cents
Pacific Nickel Mines (PNM) has officially acquired an 80-per-cent interest in Kolosori Nickel (KNL).
KNL owns the prospecting licence PL 05/19, which comprises the Kolosori Nickel Project in the Solomon Islands. The other 20 per cent is owned by traditional landowners.
Under a share purchase agreement signed last year, PNM will issue 8.375 million shares at a deemed issue price of 8 cents as part of an upfront consideration.
Additionally, up to 15.625 million shares will be issued once the Mines Department grants a mining licence for PL 05/19 and once a resource of at least six million tonnes at 1.6 per cent nickel including 3.9 million tonnes at 1.7 per cent nickel is confirmed.
As confirmed by Mining One in November last year, the project has a total mineral resource estimate of 5.89 million tonnes at 1.55 per cent nickel at a 1.2 per cent nickel cut-off.
The Kolosori Nickel Project is an advanced stage direct shipping ore (DSO) nickel laterite project with excellent development potential.
Pacific’s plan is to drill 224 holes and use the samples to provide metallurgical information needed to market a DSO product.
The drilling is expected to begin this week once a business licence is granted for PL 05/19. The first stage of drilling will include 64 holes.
At the same time, Resindo Resources and Energy Group is leading feasibility study work and has advanced engineering studies at the Kolosori Nickel Project. Resindo has identified a suitable port site for direct ship operations and a local marine survey group will provide a detailed survey of this location.
Company shares ended the day 4.35 per cent in the red to close at 4.4 cents.
