Pacific Nickel to select from wealth of funding proposals for Kolosori development

Pacific Nickel continues to progress its Kolosori nickel project in the Solomon Islands towards a development decision with the receipt of indicative finance proposals.

The company is currently reviewing the proposals it’s received for financing development of the project after holding meetings with several prospective offtakes and project financiers.

Pacific Nickel Mines (ASX:PNM) is also working through the regulatory approvals process and expects to receive a mining lease for the project soon.

The company said the Solomon Islands Mines and Minerals Board is understood to have met recently to consider the mining lease application after delays caused by the outbreak of COVID-19 in the Solomon Islands in January and that the Mines Department will action the requirements for the MMB to finalise the mining lease process.

“We are pleased that the Kolosori project is advancing toward production. Our local team and our consultants have been able to satisfy the prerequisites for the grant of a Mining Lease covering the Kolosori nickel project,” chief executive officer Geoff Hiller said.

“We are also pleased that we have broad support from our landowner groups in the area. We have worked with local groups to ensure all interests are aligned, and we thank them for their interest in the project.

“The fact that we have good interest from project financiers is testament to the progress made by Pacific Nickel Mines.”

Direct shipping ore project

Kolosori is envisioned as a direct shipping ore (DSO) project, with its easily accessible resource of 5.89 million tonnes grading 1.55% nickel which requires no processing in a DSO model.

It is currently expected to produce 93,450t of contained nickel grading 1.5% nickel, with the option to mine higher grades in excess of 1.6% nickel early in the mine schedule.

This article was developed in collaboration with Pacific Nickel Mines, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.