Nickel Industries completes notes placement
PERTH (miningweekly.com) – ASX-listed Nickel Industries on Wednesday completed the issuance of $225-million of senior secured notes at an interest rate of 10%, maturing in August 2025.
Proceeds from the notes will, along with the company’s cash reserves and future earnings from existing operations, be applied towards the remaining payment obligations for the Oracle nickel project.
Oracle comprises four rotary kiln electric furnace (RKEF) lines with a nameplate production capacity of 36 000 t of equivalent contained nickel in nickel pig iron and a dedicated 380 MW power plant within the Indonesia Morowali Industrial Park, in Central Sulawesi, Indonesia.
The first RKEF line at Oracle is expected to start commissioning in October 2022, well ahead of the contracted February 2023 project delivery date.
“Completion of this issuance has positioned the company to increase its ownership interest in Oracle to 70% and meet the remaining payment obligations for the acquisition. The early commissioning of the Oracle nickel RKEF lines, expected in October, will allow us to significantly bring forward nickel production,” said MD Justin Werner.
“Our trusted partner Shanghai Decent continues to deliver operationally with near-term commissioning. The company will soon have 12 RKEF lines in operation and approximately 100 000 t of attributable nickel production, placing us comfortably amongst the top-10 global producers.”
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