Intex Resources ASA has announced that a memorandum of understanding to develop the Mindoro Nickel project was signed during a ceremony in Shenzhen in China on January 4th 2012 with MCC8 Group Co Limited.
MCC8 is a major Chinese state controlled engineering and construction company, and is a former division of China's largest nickel producer, Jinchuan Group. The company develops, and forms consortia that undertake project finance, plant engineering and construction, mine and plant operation and equity investments. MCC8 possess a 57 year history of construction and completion of more than 80 non ferrous metallurgical plants, including the construction of China's Nickel City in Jinchang.
Under the MoU, MCC8 will be granted a Project Management Contract and will form a consortium to undertake project finance, identify a project operator, evaluate EPCM contract options, structure off take, and complete the Definitive Feasibility Study for a staged project construction.
MCC8 and its strategic partners will have a first right of refusal option to buy up to 90% of Mindoro Nickel in a staged process for USD 296 million. Intex Resources ASA will keep 10% of the project free carried and have the further right to buy back 10% for 60 million USD after completion of the project. The options are transferable to new financial or industrial consortium members being brought in. The MoU anticipates the project will be financed through a consortium of companies to be coordinated by MCC8.
Mr Jon S Petersen CEO of Intex said that "We are very pleased to see that Mindoro Nickel's green mining concept has been met with genuine interest from one of Asia's largest and most prestigious companies in the non ferrous metallurgical industry, and a company that has a declared focus on modern environmental solutions. MCC8 has a strong financial background, but also a company that has a demonstrated capability for sustainable green solutions in its many recent projects. Intex is looking forward to see Mindoro Nickel be developed to the benefit of its many stakeholders, the Provinces of Mindoro Island and the Philippine Nation."
