The Sampala nickel project was acquired from a local Indonesian partner that the company has worked with for 15 years, explained Justin Werner, managing director, Nickel Industries. “With an initial resource of 2.3 million metric tons (mt) contained nickel metal in just 900 ha explored and more than 4,700 ha of mapped prospective laterite, the opportunity to increase this resource substantially is significant.” he said.

All three IUPs are “Operation Production,” meaning that they are approved to commence mining activities. Further, the nearly 7,200 ha of land required for the Sampala Project has already been acquired. Feasibility and environmental studies have been submitted and are awaiting approval.

The IUPs are Mandiri Jaya Nickel (MJN), Erabaru Timor Lestari (ETL) and Gita Flora (GF). Nickel Industries will acquire 60% of the control and economic rights of MJN and ETL for $3 million for each of MJN and ETL ($6 million in total), payable upon completion of the due diligence period. Following positive due diligence, Nickel Industries will carry out an initial exploration program (IEP) within 18 months. After the IEP, Nickel Industries will pay the seller the purchase consideration, calculated as 60% of the JORC Resource at $2.50 per dry mt containing more than 1.70% nickel. Nickel Industries will acquire 60% of the control and economic rights in GF for a total consideration of $7 million.