PERTH (miningweekly.com) – ASX-listed Nickel Mines has completed the first stage of its investment in the Angel nickel project, in Indonesia, acquiring a 30% interest, making plans to increase its ultimate shareholding from 70% to 80%.

Nickel Mines on Monday said that after receiving shareholder approval on January 19 for the acquisition of a 70% interest in Angel Nickel, the company had now completed the Stage 1 payment of $180-million, acquiring a 30% interest.

Furthermore, Nickel Mines has reached an agreement with its collaboration partner Shanghai Decent, to increase its equity interest in Angel Nickel from 70% to 80%, with the quantum of the Stage 2 consideration increasing from $280-million to $350-million.

This Stage 2 payment is due no later than the end of December this year, however, if Nickel Mines elected to make the payment before the end of June this year, the required payment will reduce to $344-million.

Nickel Mines said on Monday that if required, the company would seek shareholder approval to acquire this additional 10% interest in Angel Nickel at its annual general meeting in May.

In addition to making the initial $180-million payment, Nickel Mines has also repaid the remaining $22.5-million to Shanghai Decent owing under the Ranger debt facility, with the company now being debt free.

“Having seen such overwhelming shareholder support for the Angel Nickel transaction through the company’s recent capital raising and subsequent extraordinary general meeting, we are delighted to be able to complete the first stage acquisition of Angel Nickel well ahead of the March 31 deadline,” said Nickel Mines MD Justin Werner.

“With the completion of the initial 30% acquisition of Angel Nickel and with the Ranger debt facility now fully repaid, the company finds itself exceptionally well positioned to explore various debt funding options available to it for completing the second acquisition consideration.”

The four rotary kiln electric furnace lines making up the Angel project have an annual nameplate capacity of 36 000 t of nickel metal, and will include a 380 MW coal-fired power plant.