Mindoro Resources Limited announced that it has received positive results from key development studies on the Agata Nickel Project in Surigao district.
The stage 1 scoping study indicates improved economics for direct shipping ore production and the potential to produce a high value, upgraded, nickel iron concentrate. The stage 2 hydrometallurgical project pre feasibility study confirms a low operating cost, 20 year project with a post tax NPV of USD 380 million and IRR of 14% assuming USD 10 per pound nickel, 8% discount rate, including estimate contingency of 14% but excluding project contingency.
On the basis of the studies' positive results Mindoro plans to pursue feasibility and permitting of DSO and pilot scale thermal upgrading prior to advancing hydrometallurgical processing options to pilot-scale testing and feasibility study. In order to progress these options the company is seeking a strategic partner.
Mr Jon Dugdale president & CEO of Mindoro said that "These studies confirm that Agata is a robust, 20 year project with key strategic advantages that allow us to pursue a lower risk path to near term cash-flow production, as well as demonstrating the value of the low-operating cost downstream processing developments."
The company has engaged Deloitte Corporate Finance Pty Ltd as its financial advisor to assist the company to secure a strategic partner to advance and finance the above objectives.
Regarding the appointment of Deloitte, Mr Dugdale stated that "Deloitte was selected because of their demonstrated knowledge and experience working with leading nickel producers and buyers, it's strong Beijing-based mining advisory team, familiarity with the Asian markets Mindoro plans to serve, and ranking as one of the largest Mergers and Acquisitions franchises with offices around the globe."
Mr Jeremy South, Deloitte's Global Mining M&A Leader, commented that "Our team of Mining M&A professionals in Asia, Australia and Canada will work closely with Mindoro's management team to achieve its goal of accelerating the development of the Agata Project via securing a strategic financing partner."
