Alliance Nickel (ASX:AXN) secure offtake for NiWest
Alliance Nickel has found a home for a large chunk of its nickel and cobalt offtake, wrapping up a deal with Dutch car maker Stellantis to supply 40 per cent of its sulphate from its rapidly evolving NiWest project in Western Australia.
The deal also backs Stellantis as a cornerstone investor, dropping $15 million into the project through scrip as the company moves through definitive feasibility in sight of near-term development.
$0.033Alliance Managing Director and Chief Executive Paul Kopejtka said a pact with one of the world’s leading and most forward-thinking manufacturers was transformative for the company.
“It validates our development strategy for the NiWest Nickel-Cobalt Project and opens critical new funding options by securing a premier Tier 1 cornerstone customer and investor,” Mr Kopejtka said.
We look forward to a long partnership with Stellantis as we continue to execute our strategy to become the next Australian supplier to the global markets of premium battery-grade nickel and cobalt sulphate – this is truly a ‘We Win Together’ outcome for both companies.”
Stellantis Chief Executive Carlos Tavares said its industry-leading decarbonisation drive is built on the foundation of a guaranteed supply of critical vital materials.
“The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world,” Mr Taveres said.
With 878 kilotonnes of nickel metal at a 0.8 per cent cut-off in ore reserves, Alliance is moving onto completion of the Definitive Feasibility study of NiWest, with the PFS already showing 27 years of initial mine life producing 19.2 kilotonnes a year for a potent net present value of $2.1 billion.
And while the trading price of nickel is still a far cry from when a short squeeze gone sour rocked the London Metal Exchange, the metal continues to be a cornerstone of investment from the majors, with demand from steel production, EV batteries, infrastructure development, and industrial applications all expected to swell.
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