Glencore Reaches Deal To Buy Kolosori

On June 15, 2022, AsX-listed Pacific Nickel signed an investment agreement with Glencore for a three-year, $22m pre-export financing, And the acquisition of four years of production from the Kolosori nickel project in the Solomon Islands.

The offtake agreement may be extended by mutual consent for a further two years. Off-take prices will be linked to market prices and subject to standard commercial adjustments based on product quality.

Pacific Nickel told shareholders June 15 that the $22 million debt financing would include $17 million in construction and $5 million in reserves. The facilities are subject to Glencore's completion of its final due diligence, approval of the Kolosori mining licence, credit approvals and complete documentation.

Early works at Kolosori were successfully completed earlier this year, including construction of infrastructure, excavation of test pits to evaluate mining and storage designs and calibration of grade control methods, completion of geotechnical assessments, and evaluation of quarrying to provide building materials for wharf and road construction.

The DFS for the project is scheduled for completion in the second quarter.