Nickel Asia Corp. (NAC) will not conduct a fund-raising activity but will instead utilize internally generated cash for the development of the Pujada nickel project in Davao Oriental.
Andre Dy, vice president for treasury, investor relations and sales of NAC, said at the company’s recent earnings call they can provide the funds for the ore production and export operations of the prospect with total initial estimated resource of 750 million wet metric tons (WMT) and mineable reserves of 60 million WMT.
Last February, Hallmark Mining Corp. and Austral-Asia Link Mining Corp. accepted NAC’s letter of intent (LOI) to become the sole and exclusive contractor for the two mine properties collectively identified as the Pujada prospect.
Under the LOI, NAC will conduct due diligence and exploration activities as the company or its wholly- owned subsidiary will be the contractor for Hallmark’s mineral production sharing agreement (MPSA) that covers 4,999.71 hectares (ha) in Mati and San Isidro, Davao Oriental, and Austral-Asia’s MPSA covering another 5,000 ha in Mati and Gov. Generoso, Davao Oriental.
The agreement also permits NAC to conduct a feasibility study to determine the economic and technical viability of the establishment of a high-pressure acid leach (HPAL) ore processing plant or an equivalent mineral processing plant within the MPSA areas.
NAC’s two existing HPAL processing plants are in partnership with Japanese firm Sumitomo Metal Mining Co. Ltd. -Jed Macapagal
