IGO/Western Areas confirm deal rumours

19th August 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Nickel miner Western Areas on Thursday confirmed that it was in preliminary discussions with fellow listed Independence Group (IGO) in relation to a change of control proposal.

IGO also confirmed the negotiations, but told shareholders that given the preliminary stage of these discussions, there is no certainty as to whether a definitive transaction will eventuate, or, as to the terms and conditions of any such transaction.

IGO at the start of this month made it clear that it was still open to nickel, copper and cobalt acquisitions, with CEO and MD Peter Bradford saying the company evaluates potential acquisition opportunities using a range of criteria, including commodities, jurisdiction, scale and mine life.

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.

Western Areas 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.