Power Nickel (TSXV: PNPN) is pushing ahead with an agreement for a project feasibility study that it entered into with CVMR Corporation back in August. The agreement is set to enter the next stage of the feasibility study, with a final benchmarking report to be released in the near term.
CVMR is a global leader in nickel powder, wire, and anode production, and is a key supplier to the battery, defence, and aerospace industries. The company, who holds metal refining tech, is also engaged in the process of mining and refining minerals in 18 different countries.
The arrangement with CVMR outlines that the company will coordinate production of advanced bench scale, piloting, and engineering studies on the Nisk project to determine the feasibility of the project, with the agreement to occur in stages.
“CVMR has enjoyed technical success in its benchmark studies to date, and after reviewing the preliminary reports, we are very encouraged with how well the mineralization is being processed. We look forward to reviewing the final benchmarking report soon and to our ongoing collaboration with CVMR,” commented Power Nickel CEO Terry Lynch.
The agreement signed in August outlines that the study as a whole is expected to take nine months, with the initial focus being the feasibility of a 10,000 ton a day plant. To date benchmarking tests are said to have “gone very well,” and that the CVMR system is expected to be able to process the mineralization at Nisk, “in a manner that will provide very favorable yields.”
As part of the process, Power Nickel is set to make a $2.25 million payment to CVMR for the next stage of the feasibility study. Funding for the study is being arranged through WCPD Group, who has assembled a consortium of investors that will acquire 3.1 million flow through units at $0.90 per share, which CVMR will acquire from front-end purchasers for $0.45 per share.
“At this time, the economics of using the CVMR process look even more compelling. Typically, a Nickel miner will make a concentrate to sell to the refiners and leave at least 25% of their Nickel unrecovered, with much of the metal byproducts unrecovered or minimally recovered. Through the CVMR process to date, we have seen excellent recoveries in the Nickel and in the metal byproducts. While the benchmarking studies will provide the first formal science on the recoveries, both CVMR and our team are excited enough to greenlight this next stage,” concluded Lynch.
Read more from original source: https://thedeepdive.ca/power-nickel-raises-flow-through-funds-at-0-90-a-share-for-next-stage-of-feasibility-study/