Brazilian Nickel has entered into an agreement with a major mining player that will see an investment in a royalty for its flagship Nickel operation.
Anglo Pacific Group, a major natural resources royalties business based in London, announced that it will invest up to $72mn for up to 5.5% royalty on production at Brazilian Nickel’s Piaui Nickel-Cobalt Project.
The Piauí Nickel Project is a nickel laterite heap leaching project in the North-east of Brazil.
The transaction will see Anglo Pacific partnering with an experience management team, with an established track record in mining and nickel heap leach operations.
This will further diversify Anglo Pacific’s portfolio, increasing the company’s exposure into the nase metals market.
Commenting on the investment, Julian Treger, Chief Executive Officer of Anglo Pacific, said:
“The Piauí royalty reflects the Company’s strategy of investing into earlier stage, high growth potential royalties. Combined with our Maracás Menchen vanadium royalty, this investment also represents a continuing strategic pivot into metals which are exposed to the burgeoning electric vehicle story.
The royalty will deliver further diversification for the Company’s asset base and commodity exposure in a lower risk manner through the incremental structure of the investment, and has the potential to deliver very high returns once in production. This investment also has the potential to contribute significantly to our cash flows in the coming years as the Project ramps up through the expanded production phases.
The Acquisition is consistent with Anglo Pacific’s strategy to acquire royalties on mining assets that are competitively positioned on the cost curve and located in established mining jurisdictions.”