Nickel Industries (ASX:NIC) reported an updated resource for the Sampala project in Indonesia of 1.10 billion wet metric tonnes at 1.24% grade of nickel and 0.09% grade of cobalt, for 8 million tonnes of nickel and 583 thousand tonnes of cobalt, according to a Monday Australian bourse filing.
It is making an advance payment of $28.5 million to secure its right to acquire a 60% equity interest, including control and economic rights, in PT Abadi Nikel Nusantara, whose mining concession forms part of the project. Following the advance payment and before completion of the acquisition, PT Abadi Nikel Nusantara will be managed and operated as a joint venture between Nickel Industries and the vendor.
The final acquisition payment of $144 million for a 60% interest in the PT Abadi Nikel Nusantara mining concession will be due in April 2027.
It submitted the feasibility study for the PT Abadi Nikel Nusantara IUP during the March quarter and expects to receive the PT Erabaru Timur Lestari feasibility study approval during the June quarter.