The company behind a proposed battery chemical plant in Townsville is buying a nickel project in Papua New Guinea.
Pure Minerals said it had acquired the Sewa Bay nickel project in the Milne Bay Province from Highlands Pacific Resources.
“Sewa Bay has the potential to be a low-cost mining operation with nickel laterite mineralisation from surface,” Pure Minerals managing director John Downie said.
“Whilst our focus remains on importing ore from our ore supply partners in New Caledonia, Sewa Bay provides us with some risk diversification and future optionality at no initial cost outlay.”
The project will cost $50,000 in cash or shares upon delineation of a JORC resource greater than 10 million tonnes at 1.2 per cent nickel, and $100,000 upon delineation of a reserve of that scale, as well as 5 per cent trailing royalty on future revenues.
Pure Minerals is working towards building the $441 million Townsville Energy Chemicals Hub (TECH) Project.
A site within the Lansdown Industrial Precinct, 40km west of Townsville, has been selected for the plant – which would have a throughput of about 600,000 wet tonnes of ore per annum to produce about 25,400 tonnes per annum of nickel sulphate and 3000 tonnes of cobalt sulphate.
Last week Pure Minerals released scoping study results showing ‘outstanding economics’ for the production of high purity alumina (HPA) as a value-add product from TECH.