Australia: Nickel Mines Officially Hold 50% Angel Nickel Shares

Australian miner,Nickel Mines Ltd., (ASX: NIC), officiallyhold another 20 percent interest of Angel Capital Private Ltd., said the management today. The Singaporean holding company and ultimate 100 percent owner of the Angel Nickel project in the Weda Bay Industrial Park on Halmahera Island, North Maluku province.

The project comprising four next generation RKEF lines and a 380 megawatts power station currently under construction. After the completion, the Company now holds a 50 percent interest in the Angel Nickel project, having acquired its initial 30 percent interest in February 2021, and has the right to further increase its interest in Angel to 80 percent by the end of this year.

The acquisition of the 20 percent interest in Angel was agreed with the company partner, Shanghai Decent Investment Group Co., Ltd, wrote the management ofNickel Minesin an official statement by adding the mining firm has spent US$347.6 million for the transaction.

Based on the assumptions in the Independent Expert Valuation Report, the value of 100 percent of the Angel Nickel project ranges from around $1.5 billion. For the acquisition program, theAustralian miner raiseda $175 million from the issuance senior unsecured notes.The notes have an interest rate of 6.5 percent and would mature onApril1, 2024.

The establishment of a listed bond program provides the company with access to a diversified and efficient form of funding which will position the company very well to pursue future opportunities that may be available to it beyond the currentAngel Nickeltransaction, said Peter Nightingale, executive director and CFO in an official statement released on March 30.

The company also announced toraises its ownerships inHengjaya Nickel and the Ranger Nickel projects from 60 to 80 percent. The transactions has valued $350 million. The issuersaid, these decisions have been made in consultation with its partner, China Shanghai Decent Investment Group Co. Ltd., and associates, which currently holds the other 40 percent interests in both projects.

In addition, the miner alsowill increase its current holding ofHengjaya Holdings Pte. Ltd., the Singaporean domiciled holding company that wholly owns PT Hengjaya Nickel Industry and an Indonesian company that owns 100 percent of of the unit.

The nickel producersaid, to finances the deal, the miner has announced that it is undertaking a A$231 million ($176.33 million) fully underwritten, accelerated pro-rata non-renounceable entitlement offer.Upon completion of the transactions, the company nickel production will increase from 26,000 tones per annum to 35,000 tones per year.

Nickel Mines is an Australian public company and produced low cost producer of nickel pig iron, a key ingredient in the production of stainless steel. The unit,Hengjaya Mines with a large tonnage and high grade saprolite deposit located in the Morowali, Central Sulawesi.

Nickel Mines unit in Indonesia restarting the operations on October 2015 and has signed an off-taker agreement withTsingshan Holdingto supply of high grade saprolite ore. The China largest stainless steel producer was one of the few groups committed to establish a local processing in a world class industrial zones, PT Indonesia Morowali Industrial Park.

As Tsingshan began to build NPI and stainless steel capacity around the zones, there became a growing requirement for nickel as feedstock to their plant. In September 2017, Nickel Mines executed a collaboration and subscription agreement with Tsingshan.

With the strategic partnership, collaboration funding and construction of two lines inHengjaya, its expecting the mines to produce 150 kilo tones per annum of NPI, containing 15 kilo tones of nickel metal equivalent.The miner was welcomed to the official list of the Australian Stock Exchange on August 20, 2018.

Following the completion of the initial public offering, Nickel Minesexercised its option to acquire a further 35 percent in the Hengjaya for $70M, taking its interest to 60 percent.The miner has a call option to acquire the remaining 40 percent interest in the Hengjaya for $120 million.

This option must be exercised no later than 12 months from the commencement of NPI production at Hengjaya Mines.In April 2019, Nickel Mines announced its intention to move to a 60 percent interest in the Ranger Nickel Project. In August 2019,Nickel Minescompleted its acquisition of the additional 43 percent interest in Ranger Nickel, taking its interest to 60 percent.

US$1: A$1.31, Rp14,500