IGO starts due diligence on Western Areas

21st September 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Independence Group (IGO) has started the due diligence process for a potential takeover of nickel miner Western Areas.

Western Areas last month confirmed that it was in preliminary discussions with IGO in relation to a change of control proposal, with IGO telling shareholders that there was no certainty that a definitive transaction would eventuate.

IGO on Tuesday said that it would progress the due diligence over the coming weeks.

Western Areas holds a number of producing nickel assets in Western Australia, and in 2022 the miner expects to produce between 16 000 t and 17 000 t of nickel in concentrate at unit costs of between A$4.25/lb and A$4.65/lb.

The company is expected to spend between A$150-million and A$170-million next year on the development of Odysseus, where first concentrate production remains on track for late in the 2022 calendar year.