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.