Blackstone Minerals Limited (ASX:BSX) has made a strategic investment in Flying Nickel Mining Corp, a subsidiary of Vancouver based Silver Elephant Mining Corp.
Flying Nickel intends to list on the TSX Ventures Exchange (TSXV) in early 2022 with its core asset: The Minago Nickel Sulfide Project located southwest of Thompson in Manitoba, Canada. Minago is an advanced stage development asset with district scale exploration potential and excellent access to infrastructure including renewable hydro- power. Blackstone’s initial investment of C$2.98m will earn a 6.85% interest in the common equity of Flying Nickel (Equity Investment).
Blackstone and Flying Nickel have also entered a Memorandum of Understanding (MoU) that will see collaboration on the production of upstream and downstream nickel and cobalt concentrates and chemical products, potential offtake and / or joint ventures to meet demand from the growing electric vehicle battery industry (MoU). The Equity Investment and MoU together represent the “Flying Nickel Transaction.”
Highlights of the Flying Nickel Transaction Include:
• Minago is a large undeveloped disseminated nickel sulfide asset poised to benefit and attract significant investment from the structural shift in nickel supply and demand driven by the growth of electric vehicle adoption
• Minago has a NI 43-101 compliant Measured & Indicated resource of 44.23Mt @ 0.74% Ni for 721.6 Mlbs Ni, and Inferred resource of 19.55Mt @ 0.74% Ni for 318.9 Mlbs Ni
• Prior metallurgical test work by SGS has demonstrated that Minago is able to produce one-of the highest nickel concentrate grades in the world (>20%) using conventional technology
• Blackstone and Flying Nickel will form a Steering Committee which will include an ongoing assessment of opportunities to enter into supply, offtake and financing arrangements relating to upstream and downstream nickel and cobalt products produced at Minago
• The MoU includes a legally binding anti-dilutionary clause ensuring Blackstone is able to maintain its equity interest at the time of each potential fundraising event performed by Flying Nickel
“The known mineral endowment of the Minago asset in combination with the potential of the Ta Khoa district represents enviable scale, being highly sought after by OEMs, battery and cathode manufacturers,” Managing Director, Scott Williamson, said.
“Large, disseminated nickel sulphide deposits of the size and grade of the Minago asset are difficult to find. The ongoing structural evolution of nickel supply chains and increasing demand for downstream nickel chemical products for the lithium-ion battery industry, is driving a unanimous view by analysts and the broader investment community that higher nickel prices are here to stay for longer. This means that large undeveloped opportunities such as Minago are primed to overcome previous barriers, including access to capital”
“The Flying Nickel Transaction provides Blackstone with opportunity to collaborate on the development of Minago, and confidence to inject future equity into the asset as it is progressively de-risked. The Ta Khoa Refinery in Vietnam is a logical home for Minago concentrate.
“Manitoba, like Northern Vietnam is blessed with access to renewable hydro power. Shipping a high-grade concentrate minimises carbon footprint and is aligned with Blackstone’s commitment to best ESG practices and ambition to become a supplier of choice to the electric vehicle battery industry.”
For further information please visit: https://www.blackstoneminerals.com.au/
