Vancouver — In an effort to move its Celestial nickel laterite project forward, Mighty Beaut Minerals (NI-V) has inked a memorandum of understanding with a Hong Kong-based investment firm.
Under the terms of a potential deal, the private company would fund a full feasibility study over the property located on the Philippine Island of Palawan. The price tag for the study is US$16 million, payable before Dec. 21. In return, Mighty Beaut will issue 10 million shares to the company, plus a seat on the company’s board and a 5-to-7.5% stake in the nickel concentrate production facility planned for the Celestial site.
The companies have until Dec. 9 to complete their due diligence and negotiate a formal investment agreement.
Mighty Beaut has been actively seeking financing to complete a bankable feasibility study for the project. Earlier this year, Mighty Beaut reached a supply agreement that has Beijing-based China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC) committing to purchase 20,000 dry metric tonnes of nickel content in concentrate annually over a 20-year period. The company envisions a staged development that would produce an intermediate product averaging 65% nickel and 32% cobalt while keeping capital costs at US$250 million.
Test-pitting at Celestial has outlined a total resource of 77.2 million tonnes grading 1.29% nickel and 0.09% cobalt.
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