The definitive asset purchase agreement (Selkirk APA) has been signed with the liquidator of Tati Nickel Mining Company (TNMC).
According to the deal, PNR will purchase the mine and surrounding prospecting licences, as well as infrastructure that was formerly operated by TNMC.
Since the selection as preferred bidder in the TNMC liquidation process and signing of a memorandum of understanding provided for a six-month exclusivity period, PNR has been carrying out due diligence work programmes on the Selkirk project.
During the 120-day closing period, PNR plans to execute a drill programme to bring the project’s 2016 bankable feasibility study to NI 43-101 compliance.
Recently, PNR acquired the Selebi and Selebi North nickel-copper-cobalt mines and related infrastructure in Botswana from the liquidator of BCL Limited (BCL).
PNR CEO Keith Morrison said: “The executed Selkirk APA together with the recent completion of the transfer of ownership of the Selebi and Selebi North Mines, completes the assets that PNR is purchasing from the BCL and TNMC liquidations in Botswana.
“PNR will move forward with the closing of the transaction and assuming the ownership of the Selkirk Mine. The Selkirk redevelopment will be based on modern best practices and assuming conservative commodity prices.”
The Selkirk underground mine is located 28km south-east of Francistown, and 75km north of the Selebi Mines.
PNR plans to close the Selkirk APA and transfer the asset ownership within 120 days.
The firm also plans to update the environmental baseline to include a tailings management facility and a processing plant.