Nickel Mines (ASX:NIC) set to buy 70% of Angel Nickel Project

Company News

by Rachael Jones

Nickel Mines (ASX:NIC) has executed a binding definitive agreement with Shanghai Decent for the acquisition of 70 per cent of the Angel Nickel project on Halmahera Island in Indonesia’s North Maluku province.

Nickel Mines will pay $US210 million for a 30 per cent stake by the end of March.

A second transaction will give them another 40 per cent of equity in the project to Nickel Mines for $US280 million.

This is based on a valuation of US$700 million.

The key assets include a four line rotary kiln electric furnace and a 380 megawatt coal-fired power plant.

Shares in Nickel Mines (ASX:NIC) are trading 4.3 per cent higher at $1.09.