Nickel Asia Corp., Hallmark Mining Corp. and Austral-Asia Link Mining Corp. decided to end their mining service contract in Davao Oriental province after the parties failed to agree on commercial terms.
Nickel Asia made the announcement in the Philippine Stock Exchange Monday, a year after announcing the partnership.
Nickel Asia reported on Feb. 17, 2023 that Hallmark and Austral-Asia accepted its letter of intent (LOI) to be the sole and exclusive mining service contractor for the two companies’ mineral production and sharing agreements (MPSA) covering 4,999.71 hectares in Mati and San Isidro, Davao Oriental.
NAC, Hallmark and Austral-Asia agreed to terminate the LOI after failing to agree on the commercial terms of the definitive agreements.
The LOI was subject to NAC’s conduct of due diligence and exploration activities and the execution of definitive agreements among the parties. It also permits the conduct of a feasibility study for NAC to establish a high-pressure acid leach (HPAL) or equivalent mineral processing plant with the MPSA area.
Nickel Asia is the country’s largest nickel ore producer operating five mines through its subsidiaries. It also has interests in the country’s only two HPAL plants and in a renewable energy subsidiary.
The share price of Nickel Asia rose 1.52 percent Monday to close at P4.67.