The Conversation (0)
June 18, 2023
Pivotal agreement opens up new opportunities for strategic funding and partnerships on unencumbered future volumes of low-carbon nickel sulphate for the rapidly growing battery materials sector
Centaurus Metals Limited (ASX Code: CTM, OTCQX: CTTZF; Centaurus or the Company) is pleased to announce that it has entered into a transaction agreement (Transaction) with Vale Base Metals, via its subsidiary Salobo Metais S.A (Vale), whereby Vale has agreed to extinguish its right to 100% of the nickel offtake (Offtake Rights) from the Jaguar Nickel Sulphide Project (Jaguar or the Project) in northern Brazil in exchange for an increase in their existing royalty from the Project.
- Centaurus acquires 100% of the offtake rights for all Jaguar nickel products from Vale in exchange for an increase in Vale’s Net Operating Royalty (Royalty) over the Project.
- Royalty to be increased by 1.2% for nickel sulphate product and 1.25% for nickel concentrate and other products produced from Jaguar.
- Extinguishing Vale’s offtake rights provides Centaurus with control and optionality over future marketing and sales of Jaguar’s strategic, long life, low-greenhouse gas emission nickel sulphate product, which is expected to be strongly aligned with the rapidly growing Western battery market.
- Clean transaction structure allows the Company to preserve its cash reserves for ongoing DFS and project development activities and avoids any equity dilution of existing Centaurus shareholders while delivering enhanced funding and partnering flexibility.
- Significantly broadens the strategic pathways available to Centaurus to fund and further de-risk the development of Jaguar against the backdrop of robust demand growth for nickel sulphate products globally.
- With an increased life-of-mine royalty, Vale’s alignment to the success of the Jaguar Project has been strengthened, benefiting all project stakeholders.
The Offtake Rights stem from the original Jaguar Sale & Purchase Agreement (SPA) of 30 August 2019, when Centaurus acquired 100% of the Jaguar Project from Vale.
Vale has now agreed to extinguish the Offtake Rights in exchange for an additional royalty over Jaguar on the same terms as the royalty arrangements included as part of the original Jaguar SPA, which increases Vale’s total Net Operating Revenue royalty over Jaguar to 1.75% for nickel sulphate and 2.00% for nickel concentrate and other products produced from the Jaguar Project.
The increase in the Net Operating Revenue royalty of 1.20% for nickel sulphate and 1.25% for nickel concentrate and other products produced from Jaguar is designed to compensate Vale for its previous contractual rights under the SPA, while at the same time allowing Centaurus to explore funding and offtake options with a wide array of potential end-users of the nickel sulphate product from Jaguar.
Offtakes for battery raw materials are in increasingly high demand from OEMs, battery manufacturers and other groups, including traders, and it is this interest that is anticipated to open up a wide variety of new funding options for the Jaguar Project. There has been notable interest from these groups in securing physical offtake of nickel products with a low carbon footprint and strong ESG credentials, as is the case with Jaguar.
Following the transaction, Centaurus will have full control and optionality over the sale and marketing of Jaguar’s strategic, long-life, low-greenhouse gas emission nickel sulphate product, which is expected to be strongly aligned with the rapidly growing Western battery market.
Centaurus’ Managing Director, Mr Darren Gordon, said the Transaction represented a pivotal moment in the development pathway for the Jaguar Nickel Sulphide Project, one of the largest undeveloped and highest grade open pittable nickel sulphide projects globally.
“We are very pleased to have reached a mutually beneficial agreement with Vale on this transformational deal – which reflects the strong relationship we have built up with them over a number of years and delivers an outstanding outcome for all project stakeholders.
“Securing 100% control over the sale of our nickel sulphate product will significantly increase the suite of strategic pathways available to us to fund and de-risk the Jaguar development.
“We anticipate that our low-greenhouse gas emission nickel sulphate product will be highly sought after in the global market, particularly amongst end-users, with Centaurus now able to freely explore a range of strategic funding and offtake options to support the Project’s development. The battery materials market is expanding exponentially, and we are increasingly seeing OEMs and other EV battery players moving further upstream as they seek to secure long-term supplies of key raw materials.
“The clean transaction structure allows the Company to retain its cash for ongoing DFS and project development activities at Jaguar and avoids any equity dilution of existing Centaurus shareholders while delivering enhanced funding and partnering flexibility.
“The doubling in Jaguar’s Measured and Indicated Mineral Resource Estimate (MRE) late in 2022 and the recent production of a high-quality battery grade nickel sulphate product from the Company’s refinery pilot plant test work program has cemented its position as a Tier-1 global nickel sulphide development Project with class-leading GHG emission credentials. With the unencumbering of the nickel units held within the Jaguar Project, the Company can now actively explore a much wider variety of funding options at both a corporate and project level.”
Vale has been an important part of Centaurus’ history, and the Company looks forward to continuing this positive track record of collaboration.
Click here for the full ASX Release
This article includes content from Centaurus Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CTM:AU
27 February
Tartisan Nickel Corp. Completes Initial Data Interpretation from the Airborne EM26 Survey, Turtle Pond Knight Danger Nickel-Copper-Platinum Project
Tartisan Nickel Corp. (CSE: TN) (OTCQB: TTSRF) (FSE: 8TA)("Tartisan" or the "Company") is pleased to announce that the Company has completed the data acquisition and initial interpretation from a Helicopter-Borne Target EM26 Magnetic and VLF Geophysical Survey on the Turtle Pond Knight Danger ("Turtle Pond") nickel-copper-platinum property near Dryden, Ontario. The survey was intended to search for mineralization that is associated with magnetic anomalies from the presence of pyrrhotite and chalcopyrite host rocks.
The airborne magnetic survey, conducted by Expert Geophysics Limited, collected electromagnetic and magnetic data using a cesium vapor magnetometer in a separate towed- bird for collecting measurements of the intensity of the earth's magnetic field to provide detailed insights into the geological features of the Turtle Pond property. Initial results indicate promising anomalies that may correlate with the presence of Nickel, Copper, and PGE mineralization. Additional geophysical interpretation and integration of previous geophysical data from Turtle Pond is underway which will help the Company to fully understand the implications of these findings and to refine exploration strategies moving forward in 2025.
"Our team is excited about the preliminary results of the magnetic survey which suggests that Turtle Pond has potential for significant mineral deposits including PGM's," said Mark Appleby, CEO of Tartisan Nickel Corp. "Next steps involve an in-depth interpretation of the data to identify drill targets and enhance our understanding of subsurface geology. This survey represents a significant step forward in the exploration and evaluation of the property's mineral potential."
The Turtle Pond Property is strategically located in a region known for its mineral deposit potential, and Tartisan Nickel Corp. remains optimistic about the potential for economic mineralization. The results from the magnetic survey will be integrated with existing geological and previous drill and assay data to support our ongoing exploration efforts.
Tartisan Nickel Corp. is committed to a thorough and responsible exploration process, prioritizing environmental stewardship and community engagement. The company will continue to collaborate closely with local stakeholders as it progresses with exploration initiatives.
An Assessment Report on the Turtle Pond Knight Danger Property has been filed.
Additionally, Tartisan Nickel Corp. will host Booth 3035 at the Prospectors and Developers Association of Canada, March 2nd to 5th, 2025, Toronto Convention Centre, Ontario. We look forward to sharing the Tartisan story and connecting with investors.
About Tartisan Nickel Corp.
Tartisan Nickel Corp. is a Canadian based mineral exploration and development company which owns; the Kenbridge Nickel-Copper Project in Northwestern Ontario; the Sill Lake Silver Property in Sault Ste. Marie, Ontario as well as the Turtle Pond Knight Danger Project in Northwestern Ontario.
Tartisan Nickel Corp. common shares are listed on the Canadian Securities Exchange (CSE: TN) (OTCQB: TTSRF) (FSE: 8TA). Currently, there are 130,995,782 shares outstanding (137,784,671 fully diluted).
Dean MacEachern P.Geo. is the Qualified Person under NI 43-101 and has read and approved the technical content of this News Release.
For further information, please contact Mark Appleby, President & CEO, and a Director of the Company, at 416-804-0280 (info@tartisannickel.com). Additional information about Tartisan Nickel Corp. can be found at the Company's website at www.tartisannickel.com or on SEDAR at www.sedar.com.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
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20 February
Chalice Mining Makes Metallurgical "Breakthrough" at Gonneville Project
Chalice Mining ( ASX:CHN,OTC Pink:CGMLF) said on Monday (February 17) that it has made an important metallurgical breakthrough at its Gonneville projected, located in Western Australia.
The company said a hydrometallurgical process for nickel concentrate is no longer needed, as recent testwork results confirm that two saleable, smelter-grade flotation concentrates can be produced across the entire sulphide resource.
Managing Director and CEO Alex Dorsch said in a press release that this new information "materially reduces" capital and operating costs for Gonneville, also substantially reducing technical risk and process complexity.
Gonneville was discovered by Chalice geologists in 2020, and is wholly owned by Chalice Mining. The company says it is the first discovery of its kind in Australia, hosting palladium, platinum, nickel, copper and cobalt.
In 2024, the discovery was the recipient of two major project status honours, one from Western Australian Premier Roger Cook in September, and another from Commonwealth Minister for Industry and Science Ed Husic in October.
These recognitions underscore the project’s role in Australia’s future critical minerals ambition.
Chalice is currently working on a prefeasibility study for Gonneville, and said testwork and optimisation will continue through the first quarter. Prefeasibility work began in 2023, with completion targeted in mid-2025.
In July 2024, Chalice signed a non-binding strategic memorandum of understanding with Mitsubishi (TSE:8058).
The company said at the time that this arrangement will be beneficial to the project, allowing for collaboration on marketing and offtake solutions and improvements in optimization for Gonneville.
Under Australia's newly legislated Critical Minerals Production Tax Incentive, the project may receive a 10 percent tax offset for its carbon-in-leach leaching, which qualifies as an eligible expenditure.
Shares of Chalice rose as high as AU$1.60 after the news on Monday, but pulled back later in the week.
Chalice said it is well positioned moving forward, with AU$90 million in cash and listed investments.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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19 February
Anglo American to Sell Nickel Business to MMG for Up to US$500 Million
Anglo American (LSE:AAL,OTCQX:AAUKF) has agreed to sell its Brazil nickel operations to MMG Singapore Resources, a subsidiary of MMG (OTC Pink:MMLTF,HKEX:1208), for a cash consideration of up to US$500 million.
According to a Tuesday (February 18) press release, the transaction includes Anglo American’s Barro Alto and Codemin ferronickel operations, along with two development projects, Jacaré and Morro Sem Boné.
The purchase price comprises an upfront payment of US$350 million, a potential price-linked earnout of up to US$100 million and a further US$50 million contingent on a final investment decision for the development projects.
The transaction remains subject to regulatory and competition approvals, with completion expected by Q3 2025.
Anglo American Chief Executive Duncan Wanblad said the sale is a key milestone in furthering the company’s restructuring strategy, which involves divesting certain assets to focus on copper, premium iron ore and crop nutrients.
“Today’s agreement, together with those signed in November 2024 to sell our steelmaking coal business, is expected to generate a total of up to US$5.3 billion of gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses,” Wanblad explained, adding that the company sees MMG as a safe and responsible operator.
MMG Chief Executive Cao Liang described the acquisition as a strategic move to diversify the company’s asset base and expand its presence in Latin America, highlighting MMG’s longstanding collaboration with Anglo American.
Anglo American’s nickel operations serve both the stainless steel and battery sectors, and Barro Alto is the only nickel mine globally that is certified by the Initiative for Responsible Mining Assurance.
Together, the company's assets produced 39,400 metric tons of nickel in 2024.
Since last year, Anglo American has been refocusing to concentrate on key commodities while divesting non-core assets.
As mentioned, in November 2024, it reached agreements to sell its steelmaking coal business.
Anglo American has also announced plans to divest its De Beers diamond unit, and is proceeding with the planned demerger of its platinum operations, which is expected to be completed by June 2025.
Platinum remains key for the automotive industry, and despite growing demand for electric vehicles, which do not use platinum-group metals, the company believes supply constraints in South Africa could support future pricing.
Anglo American will retain a 19.9 percent stake in the demerged platinum unit, but will not have board representation. The company has stated that it intends to gradually reduce its stake over time.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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12 February
Nornickel's Net Profit Dips 37 Percent as Western Sanctions and Market Hurdles Persist
Moscow-based miner Norilsk Nickel (Nornickel) reported a 37 percent decline in net profit for 2024, citing ongoing western sanctions and lower metal prices as primary factors affecting its financial performance.
According to the company’s 2024 financial results, consolidated revenue fell 13 percent year-on-year to US$12.5 billion. EBITDA was down 25 percent to US$5.2 billion, with net profit dropping 37 percent to US$1.8 billion.
Company President Vladimir Potanin said that geopolitical restrictions, reduced access to western equipment and shifting trade patterns have negatively impacted the company’s ability to generate cashflow.
“Our business as part of Russian economy remains under significant external pressure. Sanctions and restrictions as well as falling prices of our key metals continued to weigh on our revenue, profitability and ability to generate cash flow," Potanin commented in a press release shared on Monday (February 10).
“Nevertheless, in 2024 we managed to focus on operations and reverse the negative momentum."
CFO Sergei Malyshev said that Nornickel’s board would not recommend paying dividends for 2024.
Although Nornickel itself is not directly sanctioned, broader measures against Russian industries have led to reduced purchases from western clients, disrupted payment channels and logistical difficulties.
The company has redirected its sales to Asian markets to mitigate these effects.
Nornickel is forecasting a global nickel surplus of 150,000 metric tons in 2025, the same as its 2024 surplus estimate. In terms of the market for palladium, which it also produces, it's expected to remain balanced.
The company notes that the US administration’s policy direction on vehicle electrification could influence palladium demand, given its use in internal combustion engine exhaust systems.
Nornickel was tight-lipped about its discussions surrounding a Chinese joint venture.
In December, two sources familiar with the matter told Reuters the company was in talks with Chinese conglomerate Xiamen C&D (SHA:600153) to establish a joint venture to process Nornickel’s copper raw material into metal. Nornickel confirmed the negotiations at the time, and said in a conference call this week that it can't disclose further details.
Nickel market facing challenges in 2025
On a macro level, the nickel market is under pressure due to oversupply and slow demand growth.
The base metal experienced price volatility in 2024, with a brief surge in the first quarter followed by a decline, closing the year in the US$15,000 to US$15,200 per metric ton range.
Industry analysts have pointed to a continued supply glut as a key factor suppressing prices.
For instance, Indonesian production has expanded significantly in recent years, adding to the global nickel surplus. Efforts to rebalance the market have been slow, with limited price recovery expected in 2025.
The potential policy shifts under US President Donald Trump’s administration could further influence the global nickel market. The Inflation Reduction Act, introduced under the previous administration, imposed restrictions on the sourcing of critical minerals for electric vehicle (EV) batteries. Current rules require that nickel suppliers meet foreign entity of concern standards to qualify for tax credits in the US EV market.
Under existing provisions, companies linked to China, Russia, Iran or North Korea cannot hold more than 25 percent control over entities supplying critical minerals for US EV batteries.
This has affected Indonesian nickel exports, as many projects in the country have significant Chinese ownership.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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11 February
Blackstone Minerals Expands Portfolio with Mankayan Copper-Gold Project Acquisition
In a strategic move that marks a significant expansion beyond the company's nickel-mining operations, Blackstone Minerals (ASX:BSX,OTC Pink:BLSTF,FWB:B9S) has announced a merger of equals with IDM International to acquire the Mankayan copper-gold project in the Philippines.
This acquisition positions Blackstone to leverage its expertise in the evolving mining landscape, driven by energy transition requirements, according to Blackstone Managing Director Scott Williamson.
"We can leverage (the) experience that we have from operating in Vietnam, which is a similar jurisdiction. We've operated in Vietnam for the last five or six years; we've been focused on nickel in Vietnam. Now we can use that team and our expertise in developing mines in Vietnam to the Mankayan project in the Philippines," he explained.
The Mankayan project is renowned for its high-grade copper and gold potential, supported by impressive historical drill results. Williamson emphasized the project's significance, indicating the potential for a substantial resource expansion.
Blackstone's future plans for the Mankayan project include an aggressive exploration and development strategy.
"We're looking to do a bit of geophysics, but then also, once the merger has been completed, assuming it is all successful, then we would look to do further drilling. We think that there's opportunity to expand the resource," Williamson said.
The Philippines presents a favorable backdrop for this acquisition. Williamson pointed out that the government's pro-mining stance, coupled with successful operations by other companies in the region, creates an opportune climate for development.
Watch the full interview with Blackstone Minerals Managing Director Scott Williamson above.
Disclaimer: This interview is sponsored by Blackstone Minerals (ASX:BSX,OTC Pink:BLSTF,FWB:B9S). This interview provides information which was sourced by the Investing News Network (INN) and approved by Blackstone Minerals in order to help investors learn more about the company. Blackstone Minerals is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Blackstone Minerals and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
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