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Pure Minerals, partners extend nickel-cobalt supply deal for Townsville project

Pure Minerals Ltd. subsidiary Queensland Pacific Metals Pty. Ltd. extended a nickel-cobalt ore supply agreement for the Townsville Energy Chemicals Hub in Australia to 10 years from five, with an option to renew for another five years.

In October 2018, Pure Minerals signed a deal to acquire Queensland Pacific for A$500,000 in cash and 400 million shares. Apart from the project, Queensland Pacific has a supply deal with Societe des Mines de la Tontouta and Societe Miniere Georges Montagnat SARL covering 600,000 tonnes of nickel and cobalt ore per year starting in June 2020.

Pure Minerals said Oct. 16 that the key terms of the agreement remain unchanged. It also noted that the extension came amid an anticipated increase in nickel ore prices due to the Indonesian government's plan to bring forward an export ban.

A pre-feasibility study on Townsville is targeted for completion within the current quarter amid a slight delay related to sourcing equipment quotes, the company said. As of March, a bankable feasibility study was expected to be completed by July 2020, with production anticipated in 2021.