PERTH (miningweekly.com) – Diversified miner Glencore has provide ASX-listed Pacific Nickel Mines with a letter of commitment confirming its intention to provide up to $22-million in funding for the Kolosori nickel project, in the Solomon Islands.
“Glencore’s letter of commitment to provide an up to $22-million senior secured debt facility for the Kolosori nickel project is an important milestone for the development of the project,” said Pacific Nickel Mines CEO Geoff Hiller.
“The company has worked closely with Glencore since first announcing the granting of a mandate to Glencore in June 2022. The company anticipates that it will be in a position to effect an initial drawdown of $3-million once documentation has been completed. This will enable the company to continue the current development works,” Hiller said.
The company said that the funds raised through the arrangements with Glencore would be sufficient to meet pre-production funding requirements for the Kolosori project.
The loan will have a three-year repayment term, starting after the first shipment of ore, with no mandatory hedging in place. The offtake agreement will run for a six-year period on a take-or-pay basis, with all of the mine’s production covered under the offtake agreement.
Pacific Nickel has previously said it was aiming to start direct shipping ore production at Kolosori late in the third quarter of this year, subject to financing and contractor mobilisation.