Nickel Industries will purchase the Cyclops project for $7m in cash. Credit: Enrique from Pixabay.

Bolt Metals has signed an agreement for the sale of a 100% stake in the Cyclops nickel-cobalt project in Papua province, Indonesia, to Nickel Industries (NIL).

In December 2021, Bolt Metals and NIL signed a similar agreement whereby the latter agreed to acquire 100% of the Cyclops project.

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However, the deal did not close within its agreed timelines due to the Indonesian Government’s decision to revoke the project’s mining permit (IUP).

Subject to Bolt shareholder approval of the transaction, Nickel Industries will purchase a 100% stake in the project for $7m in cash.

Under the latest conditional share sale and purchase agreement, Bolt’s wholly owned subsidiary Cobalt Power (Asia) will receive cash payments of $2.5m, including the initial $500,000 deposit paid to Bolt in December 2021.

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Cobalt Power will also receive $4.5m on the second anniversary of the IUP extension or ten business days following the date on which the first commercial shipment from the project is sent for processing at a smelter or leach plant, whichever comes first.

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Nickel Industries will have the option to purchase 45% of the Cyclops project from Bolt by paying a total consideration of $500,000 and an additional consideration of $980,000 to underlying Cyclops project owners, if Bolt shareholders do not approve the transaction.

The 5,000-hectare (ha) Cyclops project is estimated to contain significant near-surface nickel and cobalt mineralisation across 1,205ha with drilling intersecting significant mineralisation in the limonite, transition and saprolite zones of the laterite profile.