Mincor’s board approves development of Kambalda nickel operation

Photo: Mincor Resources

Mincor Resources announces that its Board has approved the development of its 100%-owned Kambalda Nickel Operations in Western Australia, marking the beginning of an exciting new chapter for the world-renowned nickel district and signalling the Company’s imminent return to the ranks of Australia’s mid-tier nickel mining companies.

The announcement of a Final Investment Decision (“FID”) for the planned re-commencement of nickel mining at Kambalda by Mincor is supported by a Credit Approved Terms Sheet which has been agreed with two Tier-1 international banks to provide a secured $55 million project finance facility. The Facility remains subject to completion of legal due diligence, documentation and customary conditions precedent.

The Facility, together with the Company’s existing cash reserves of more than $100 million, will allow Mincor to efficiently execute the delivery of its nickel restart plan in line with the Definitive Feasibility Study (“DFS”) announced in March 2020.

The DFS outlined an initial 5 year operation with pre-production CAPEX of $68 million and a peak funding requirement of $97 million. KNO is forecast to produce 71kt of nickel and 5kt of copper on a life-of-mine basis.

First nickel-in-concentrate production scheduled for late Q1 CY22.

Much of the nickel produced from the Kambalda District came from a few very large (>100,000 tonnes) nickel mines, all of which are located around the Kambalda Dome. Mincor’s North Kambalda landholding cover the northern third of the Kambalda Dome, with nickel production from seven known ore systems including Otter Juan, the single biggest producer in the district.