Solomon Islands issues Letter of Intent for Pacific Nickel’s Kolosori project
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Special Report: Armed with a Letter of Intent, Pacific Nickel looks set to get things moving at its Solomon Islands project.
The Solomon Islands has given its strongest indication yet that the application process and required regulatory approvals for the Kolosori Nickel Project are tracking quickly towards a positive outcome.
Pacific Nickel (ASX:PNM) has announced that the Minister of the Ministry of Mines, Energy and Rural Electrification advising that the Minister intends to issue a Mining Lease for the project, moving PNM oh-so-close to really getting things moving.
The Hon. Bradley Tovosia, Minister of the Ministry of Mines, Energy and Rural Electrification for the Solomon Islands, advised Pacific Nickel of the development through a Letter of Intent, following an extraordinary sitting of the Minerals Board on 6 July 2022.
“Pacific Nickel Mines has now reached a significant milestone in the context of advancing the development of the Kolosori Nickel Project,” Pacific Nickel CEO Geoff Hiller says.
“The Company has worked closely with the Ministry and welcomes the support of the national and the Isabel provincial governments and the traditional landowners in respect of the Company’s overall strategy to develop the Kolosori Nickel Project for the benefit of local communities and all stakeholders.
“We look forward to finalising the grant of the Mining Lease with the Ministry. The two key matters of title and finance have been advanced sufficiently to proceed with the development of the project as expeditiously as possible.”
The Kolosori Nickel Project is an advanced stage direct shipping ore nickel laterite project located at the southern end of Isabel Island, in the Solomon Islands.
News of the progression of the mining lease comes on the heels of Pacific Nickel reaching a non-binding term sheet with a Glencore subsidiary for a US$22m debt facility and nickel offtake earlier this year.
That agreement comprises a US$17m construction tranche and a US$5m reserve tranche along with a four-year offtake for all of Kolosori’s nickel laterite production, which can be extended by a further two years by mutual agreement.
Pacific Nickel is 80% owner of the project, with the remaining 20% ownership held by the traditional landowners.
This story was developed in collaboration with Pacific Nickel, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.”