Pelican Resources Ltd. said Oct. 12 that it reached an agreement for the sale of subsidiary Sibuyan Nickel Properties Development Corp. to Dynamo Atlantic Ltd.
Sibuyan Nickel is the beneficial owner of the Romblon nickel project in the Philippines.
Total consideration for the sale will be A$3.6 million, and there is no longer a 2.5% royalty payable to the vendors on any future revenue from the Romblon operations.
The deal is expected to be settled April 5, 2019.
Pelican's board of directors traveled to the Philippines on Oct. 7 to meet with representatives of all parties, including those from All-Acacia Resources Inc., Pelican's venture partner in Sibuyan Nickel.
Pelican Resources originally agreed to sell 100% ownership of Sibuyan Nickel to Dynamo Atlantic for A$4.7 million in June 2015.
Dynamo Atlantic expressed concerns due to political changes in the Philippines and looked to backtrack on the deal.
In March 2017, it was widely reported that the Philippines' Department of Environment and Natural Resources was going to cancel numerous mineral production sharing agreements, including those held by Sibuyan Nickel in relation to the Romblon project.