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Thursday, March 28, 2024

Nickel Asia opts to sell 12.5% stake in Taganito

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Nickel Asia Corp. said Thursday its board approved the sale of its 12.5-percent shareholdings in Taganito HPAL Corp. to the Japanese operator for $42 million.

Nickel Asia said in a disclosure to the stock exchange the stake was sold to Sumitomo Metal Mining Co. Ltd. of Japan.

Following the transaction, Nickel Asia will retain a 10-percent interest in THPAL, while SMM’s ownership will increase from 62.5 percent to 75 percent.

Mitsui & Co. Ltd. of Japan holds the remaining 15-percent stake in Taganito HPAL.  

Nickel Asia said the transaction was expected to be completed by end-2016, upon the

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fulfillment of requirements in the deed of sale, including regulatory approvals.

“The decision to sell a part of our ownership in THPAL was taken in order to allow NAC to focus more of its resources towards its new renewable energy business and expansion and development of mine operations, which is the company’s core expertise,” said Nickel Asia president and chief executive Gerard Brimo.

THPAL which was completed in 2014 is the second downstream nickel processing plant in

the Philippines employing the high-pressure acid leach technology to process limonite ore, which is being supplied exclusively by Taganito’s mining subsidiary.

It represents the largest investment in the country’s mineral resource sector to-date.

Construction of THPAL followed the success of thefirst HPAL plant under Coal Bay Nickel Corp., where Nickel Asia also has a 10-percent equity interest.

Coral Bay started operations in 2005.

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