Axiom says near supply agreement for Solomon Islands nickel mine
MELBOURNE, Oct 3 (Reuters) - Australia’s Axiom Mining on Wednesday said it was close to deciding on a partner to take nickel ore supplies from its mine in the Solomon Islands in exchange for finance.
Mining at the San Jorge project in the Pacific nation will start in December, with ore shipments expected to begin in the first quarter of next year, Axiom said in a statement.
The Solomon Islands approved a mining lease last month and ore loading facilities are currently being built, the firm said.
A previous mine finance arrangement with Gunvor Singapore, for A$5 million ($3.6 million) in funding and up to A$10 million towards mine construction, that was made in 2015 has now expired, Axiom said.
“With the recent grant of the mining lease there has been an increase of interest and demand from nickel ore consumers for Axiom’s San Jorge material,” it said.
The San Jorge mine is a nickel laterite ore deposit.
“Terms and conditions of proposed agreements continue to be refined and are in a final stage of negotiation,” Axiom said, without giving further detail. ($1 = 1.3953 Australian dollars) (Reporting by Melanie Burton Editing by Joseph Radford)
AVQ Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
