North American Nickel Inc announced that Premium Nickel Resources (PNR) has executed a definitive asset purchase agreement (APA) with the Liquidator of BCL Limited (BCL) to acquire the Selebi, and Selebi North (together the Selebi Assets) nickel-copper-cobalt (Ni-Cu-Co) assets and related infrastructure formerly operated by BCL. PNR has announced that they are now targeting the closing of this transaction, and transfer of ownership of the assets, within 120 days. PNR is also negotiating a separate asset purchase agreement to finalize terms for any prioritized Tati Nickel Mining Corporation (TNMC) assets that may be purchased.
The Selebi Assets include two shafts and related infrastructure (rail, power and water). The redevelopment plan is based on the re-characterization of the remaining resources and the ability to produce both a Cu concentrate and a separate Ni-Co concentrate.
NAN maintains a 10% equity ownership position in PNR following their pro-rata participation in a recent private placement financing. NAN also holds a 5-year Warrant to purchase an additional 15% undiluted equity interest in PNR for USD 10M and is providing the corporate management and technical expertise to PNR on a contractual basis.