PERTH (miningweekly.com) – Junior Malachite Resources has struck a term sheet to acquire an 80% interest in Kolosori Nickel.
Malachite earlier this year entered into a memorandum of understanding with Kolosori Nickel to carry out a due diligence on the company, which owns the Kolosori nickel project, in the Solomon Islands.
Under the terms of the agreement now reached, Malachite would pay A$750 000 by issuing 9.375-million shares at a deemed price of 8c each, and would pay a further A$1.25-million, through the issue of 15.62-million shares, on the grant of a mining licence and the confirmation of a resource of a minimum of six-million tonnes grading 1.6% nickel, including a 3.9-million-tonne Joint Ore Reserves Committee-compliant resource.
The agreement is subject to a number of conditions, including a formal share sale agreement and Malachite shareholder approval.
The Kolosori nickel project is an advanced stage direct shipping ore nickel laterite project, where mining could start within the next two years.