Critical minerals developer Alliance Nickel (ASX:AXN) has been notified by multinational automotive manufacturer Stellantis N.V (BIT:STLAM) that it has received clearance to undertake the second tranche strategic placement to Alliance worth $2.3 million.
Alliance, which has a $64.89 million market capitalisation, says the Australian Foreign Investment Review Board (FIRB) has granted the approval to undertake the second tranche payment, which is expected to take place in early September 2023.
the Australian Foreign Investment Review Board (FIRB) has granted the approval to undertake the second tranche payment
Alliance reports the second tranche will see it issue to Stellantis over 12.733 million new ordinary shares at $0.18 per share for receipt of further equity funds of about $2.3 million.
The company notes upon settlement of the placement, Stellantis will have subscribed for a total of $15 million under the strategic placement and will hold an approximate 11.5% interest in Alliance.
This announcement comes as part of Alliance’s binding offtake agreement with Stellantis for about 40% of future annual forecast of nickel and copper sulphate production from its NiWest Nickel-Cobalt Project in Western Australia for an initial 5-year term, as announced by Alliance in May 2023.
As reported by Alliance, this partnership was designed to strengthen Stellantis’ value chain for electric vehicle (EV) battery production, as well as ‘strongly’ support the NiWest Definitive Feasibility Study (DFS).
Meanwhile, Alliance states it will continue to ‘strongly’ advance all ‘major’ work streams for the development of the NiWest Nickel Project and expects a DFS to be released in Q4 2023, in conjunction with discussions with other potential tier-one strategic partners.
Alliance Nickel is an ASX-listed nickel and critical minerals developer, with its principal asset being its wholly owned flagship NiWest project.
This project is located adjacent to Swiss multinational commodity trader and miner Glencore’s (LON:GLEN) Murrin Murrin Operations in the North Eastern Goldfields and is host to one of the highest-grade undeveloped nickel laterite resources in Australia.
NiWest also has access to existing primary mining infrastructure, such as an established network of roads, a railway, and a gas pipeline.
Write to Adam Drought at Mining.com.au
Images: Alliance Nickel Ltd
