Granted Exclusivity To Negotiate For New Caledonia Nickel And Cobalt Mine
New Century Resources Limited (ASX:NCZ) has entered into a 60-day exclusivity period with Vale Canada Limited (VCL) to complete due diligence and negotiate the acquisition of 95% of the issued shares in Vale Nouvelle-Calédonie S.A.S. (VNC), which owns and operates the Goro Nickel & Cobalt Mine in New Caledonia.
Subject to due diligence and negotiation of formal agreements, if the transaction proceeds the financial terms would include a financial package to support the transition and continuity of VNC operations from VCL to NCZ. The parties also plan to jointly engage with the French State to confirm its continued financing support
The Goro operations include a fully integrated and operational world-class mine, processing plant and port facility
Managing Director, Patrick Walta, said VNC flowsheet simplification planning is underway, targeting transformation of Goro’s cost base to become a sustainable global top-10 Nickel and Cobalt producer, via:
o Conversion to low-impurity Limonite only feed
o Decommissioning of the existing highly complex Refinery, which has been the major source of historical operational disruptions
o Transition to 100% Mixed Hydroxide Product (MHP), highly sought after by the Electric Vehicle industry
o Obtaining a licence for Saprolite ore export, generating further by-product revenue
If the transaction proceeds, the successful acquisition of Goro operations would result in New Century Resources becoming a major supplier of Nickel and non-DRC sourced Cobalt for the Electric Vehicle industry.
“New Century is pleased to secure this exclusivity agreement in relation to the potential acquisition of the Goro Nickel & Cobalt Mine. The Company is excited to continue to work with Vale on the completion of due diligence and negotiation of formal agreements for the acquisition,” Mr Walta said.
“New Century has been impressed by the VNC site team and also the quality and scale of infrastructure at the Goro Mine.
“The current initiatives instituted by VNC to simplify the flowsheet provide strong potential to transform Goro into a sustainable long-life operation and a major global supplier of Nickel and non-DRC sourced Cobalt.”
