PERTH (miningweekly.com) – The Australian Foreign Investment Review Board (FIRB) has approved automotive maker Stellantis NV’s investment into ASX-listed Alliance Nickel.
The two companies earlier this year struck a binding offtake and share subscription agreement which will see Stellantis take an 11.5% interest in Alliance by subscribing for A$15-million worth of new shares in the company.
The placement is to be undertaken in two tranches, with the first consisting of 70.6-million shares to be issued under the company’s existing capacity within the next five business days. The second tranche of 12.73-million shares is subject to FIRB approval, which has now been granted.
The settlement of the second tranche placement is expected in early September.
Funds raised in the placement will go towards completion of the definitive feasibility study and engineering design works for the NiWest project.
Alliance last year updated the capital cost estimates for the NiWest project to just over A$1.26-billion, with the 2018 prefeasibility study estimating that the project could produce 456 000 t of nickel and 31 400 t of cobalt over a 27-year mine life, based on a nameplate processing capacity of 2.4-million tonnes a year.