Explorer and developer Pacific Nickel Mines (ASX:PNM) has submitted a final drawdown notice for US$19 million to Swiss miner Glencore (LON:GLEN) to help finance the Kolosori Nickel Project within the Solomon Islands.
Pacific Nickel, which has a $37.25 million market capitalisation, says the submission has been made in respect of its US$22 million Glencore International AG Loan Facility for Kolosori following the completion of the final loan conditions.
An initial drawdown of US$3 million under the Loan Facility was achieved in May 2023.
Pacific Nickel reports that based on its latest financial modelling, the total Glencore facility is expected to be sufficient to meet the pre-production funding requirements of the project.
The company notes Blackbird Commodity Partners acted as debt advisor for this transaction, while its legal advisor was MinterEllison.
Speaking on the final drawdown Pacific Nickel Chief Executive Officer Geoff Hiller says: “Pacific Nickel Mines has now submitted a drawdown notice for the final US$19 million under the senior secured loan facility offered by Glencore of up to US$22m for the Kolosori Nickel Project.
“These funds will be applied to ongoing completion of project infrastructure”
These funds will be applied to ongoing completion of project infrastructure including the haul road, earthworks for stockpile pads, completion of the DSO loadout wharf, construction of project access roads, construction of a 200-man to scale up for full production, and project working capital. It is currently anticipated that mining operations will commence in October 2023.”
Pacific Nickel is an ASX-listed nickel-focused explorer and developer with 2 near-term development assets, the Jejevo and Kolosori Nickel Projects located on Isabel Island in the Solomon Islands.
Kolosori represents an ‘advanced’ stage direct shipping ore nickel laterite project progressing to development. The project has several ‘positive’ aspects, according to Pacific Nickel, including close proximity to the coast, no processing requirements, a low-capital route to direct shipping ore production, and local landowner support.
Write to Adam Drought at Mining.com.au
Images: Pacific Nickel Mines Ltd