Mincor Resources NL said May 23 that it agreed to acquire Independence Group NL's mothballed Long nickel mine in Western Australia near the former's Durkin and Ken/McMahon deposits.
The operation holds a JORC-compliant resource of 750,000 tonnes grading 4.2% nickel for 32,000 tonnes of contained nickel. It was transitioned to care and maintenance at the end of Independence Group's fiscal 2018 after 16 years of production.
Under the deal, Mincor will pay A$3.5 million in shares, with an additional A$6.0 million payable to Independence Group in cash or shares upon reaching production-based milestones.
A definitive feasibility study for an integrated mine plan to restart the Long mine is due in the December quarter. The study may include potential synergies and a mining inventory.
Part of the work program to complete the study involves identifying the location and finalizing the design for the box-cut at Cassini, further metallurgical test work and underground mine design.
Meanwhile, Independence Group subscribed to A$1.5 million in Mincor shares, part of the latter's capital raising.