Search

Nickel acquisition

COMET Resources Limited and QNI Pty Ltd, a wholly owned subsidiary of Billiton plc, have taken a significant step forward in the development of the Ravensthorpe nickel project by acquiring the entire interest in the project previously held by a private syndicate of individuals (the ELW Group).

Comet and QNI have also agreed to jointly buy the rights to minerals below 35 metres from surface at the Shoemaker/Levy deposit of the Ravensthorpe project.

The rights were previously held by Greenstone Resources NL (75 per cent) and the ELW Group (25 per cent).

Greenstone announced on July 21 that it would sell its rights and certain minor associated tenement interests to Billiton Nickel (Ravensthorpe) Pty Ltd, a subsidiary of Billiton plc, for $2.1 million.

As a result of these transactions, the Ravensthorpe Nickel Project will be owned, financed and developed 50 per cent by Comet and 50 per cent by QNI/Billiton. Comet’s net cash outgoings from these acquisitions are about $9 million, exclusive of an unsecured $2 million loan from the ELW Group which effectively enables deferred payment by either cash or Comet shares, at Comet’s election.

The loan is interest free until June 30, then bears interest at commercial rates. Comet and QNI have also agreed to pay the ELW Group a production royalty which, at the estimated long-term nickel price of US$3.25/lb, will equate to less than US$0.02/lb of production.

Comet’s net cash position after these acquisitions will be just under $20 million, of which $10 million has been committed to the pre-project financing phase of the project (Front End Engineering Design) due for completion in the first half of 2001.

The agreement also brings to an end the legal proceedings between Comet and the ELW Group announced on September 20 last year.

Login

(existing subscribers)

The password field is case sensitive.
Request new password

Add your comment

BNIQ sponsored byLPC cresa

Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/06/18

1 year TSR5 year TSR
thOkapi Resources0%0%
128thPacifico Minerals100%2%
283rdOklo Resources30%30%
581stComet Resources-15%12%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

31/01/18
$0 Bought
31/01/18
$0 Bought
31/01/18
$0 Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

393rd↓Comet Resources$0
456th-Okapi Resources$0
457th↓Oklo Resources$0
460th↓Pacifico Minerals$0
461st↓Pan Asia Corporation$0
507 listed resources companies ranked by revenue.
Source: Morningstar

Remuneration from Comet Resources

683rdAnthony Cooper$170k
1292ndEdmund Czechowski$38k
1293rdRobert Jones$38k
Ranked by total remuneration from all listed WA companies

BNiQ Disclaimer