https://www.engineeringnews.co.za
Copper|Mining|Power|PROJECT|Refinery|Operations
Copper|Mining|Power|PROJECT|Refinery|Operations
copper|mining|power|project|refinery|operations

Blackstone takes option on CaNickel's Bucko Lake mine

The Wabowden project includes the well-maintained Bucko mine and processing facility.

The Wabowden project includes the well-maintained Bucko mine and processing facility.

5th December 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

ASX-listed Blackstone Minerals has executed an option agreement to acquire 100% of the Wabowden nickel sulphide project, in the Thompson nickel belt of Manitoba, Canada, from CaNickel for up to C$80-million.

CaNickel CEO Shirley Anthony said after "every effort was made" to restructure its debt, it was determined that selling the asset to a motivated buyer was the most viable path forward for the nickel company.

With a resource of 1.3-million tonnes of contained nickel, Wabowden could secure all the feed required for Blackstone's Ta Khoa refinery, in Vietnam, removing its dependency on sourcing third-party feedstock.

“Securing long term low carbon IRA [US Inflation Reduction Act] compliant nickel feed for the Ta Khoa refinery has been a key question from potential JV [joint venture] partners. This option agreement provides greater certainty over the nickel feed sourcing strategy for Ta Khoa, which is an important factor in the selection of a JV partner, and the company will provide an update on this soon,” said Blackstone MD Scott Williamson.

The Wabowden project includes the well-maintained Bucko mine and processing facility, which retains key operating permits.

The company has taken a 12-month option for a cash payment of C$1.1-million. During the option period, Blackstone will optimise development and funding pathways, including JVs, government funding, royalty, debt and equity opportunities.

Blackstone’s strategy is to progress to a much bigger scale operation that is better suited to the large-scale resource and to change the mining methods.

Wabowden could also establish a key central point of operations in Manitoba for Blackstone to potentially consolidate its existing nickel interests in Manitoba, as well as other nickel assets in the region.

Its existing nickel interests and experience in Manitoba are held through strategic investments in ASX-listed Corazon, or Lynn Lake the nickel/copper project, and TSX-V-listed Flying Nickel, or the Minago nickel project.

“Its location in the tier-one jurisdiction of Manitoba, with access to 100% renewable power, aligns with our goals to produce Green Nickel, meaning that Wabowden ticks all the boxes that are important to our goals and the project would be complementary to the strategy we are executing,” said Williamson.

Blackstone has announced an accelerated nonrenounceable prorate entitlement offer to raise up to A$10.2-million. The proceeds will be used to support Wabowden’s option opportunity, complete the definitive feasibility study for the Ta Khoa refinery and to progress the strategic partnerships process.

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 24 May 2024
Magazine round up | 24 May 2024
24th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.307 0.372s - 160pq - 2rq
Subscribe Now