Metminco Limited announces that it has entered into a binding term sheet to acquire 100% of the issued capital of Sunshine Metals Ltd (Sunshine) which holds 80% of the Jejevo Nickel Project on Santa Isabel Island in the Solomon Islands, as well as an 80% interest in an early stage bauxite prospect, the Tausere Project, located on the southern coastline of Choiseul Island, situated at the northwest extent of the Solomon Islands.
Executive Chairman Mr. Kevin Wilson commented: “The acquisition of the Jejevo Nickel Project, gives Metminco exposure to nickel at a time when rising battery manufacture is expected to accelerate demand for the metal. We will commence advancing Jejevo as soon as the acquisition completes. Together with our Quinchia Gold Project we now have two advanced exploration projects that we believe offer near term development potential.”
The Jejevo Nickel Project is based on a nickel laterite deposit which was previously held by Inco and Sumitomo and the subject of considerable drilling and studies. The Project combines attractive nickel grades, with close proximity (approximately 11kms) to a site believed suitable for barge exports and is potentially suitable for a low capital direct shipping operation (DSO) development.
The acquisition will provide Metminco with a project that the Company intends to rapidly advance and provides exposure to nickel prices in a period when demand growth is expected to be driven by, in particular, the growing market for batteries to support increasing electric vehicle production. Together with its Quinchia Gold Project in Colombia, Metminco will have two diverse and rapidly advancing metal projects and is well positioned to benefit from any upswing in metal pricing.