Australia-based Panoramic Resources is looking to divest its Savannah nickel project in Western Australia (WA) as one of the alternatives under a strategic review process.
Amid weak battery metal prices, the company has initiated the review for the nickel mine.
It is assessing options such as the total or partial sale of the Savannah mine, joint ventures, or other funding options or partnerships with potential parties.
Panoramic said the review of the mine aims to assess ongoing capital requirements in the context of the current nickel market environment.
This process will also gauge funding options, including proposals from third parties.
Panoramic has selected Treadstone Resource Partners to carry out the strategic review and consider options for both the company and the Savannah nickel project.
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Furthermore, the Australian company chose Gilbert + Tobin to assist with the review process.
In a press statement, Panoramic said: “The strategic review will seek to maximise value for Panoramic shareholders. There is no guarantee that the strategic review will result in any specific transactional outcome.”
Located in East Kimberley, the Savannah nickel-copper-cobalt mine initially started production in 2004. It was placed on care and maintenance in 2015 due to lower nickel prices.
In 2021, the mine restarted production. However, the company suspended operations at the mine due to the impact of the Covid-19 pandemic and the drop in nickel prices in 2020.
At that time, the mine reported production of more than 180,000t of nickel, 60,000t of copper and 5,000t of cobalt.
Following a thorough technical and commercial assessment, the Savannah project recommenced operations in 2021. It is estimated to have an operational life of 12 years.