Panoramic Resources has offloaded its Lanfranchi nickel project in Western Australia to a subsidiary of Texas-based Black Mountain Metals for $15.1 million.
The move comes months after a board decision to restart the Savannah nickel-copper-cobalt operations.
A sale agreement with Black Mountain was originally signed in September 2018. Panoramic put Lanfranchi on care and maintenance after operating the mine from 2005 to 2015.
The operation produced 94,196 tonnes of nickel at an average grade of 2.45 per cent.
Lanfranchi still maintains an ore tolling and concentrate purchase agreement with BHP Billiton Nickel West until February 2019, where ore produced is processed through the West Kambalda nickel concentrator.
Panoramic has been paid a deposit of $1.51 million by Black Mountain, followed by a $11.99 million payment upon meeting (or being waived) its conditions of sale.
The remaining balance – $1.6 million – will be paid in 12 monthly instalments 14 days from Lanfranchi’s first supply to, or processing of ore, at BHP’s West Kambalda, or January 1 2021 – whichever is earlier.
Panoramic said in an ASX statement that it was delighted to reach this agreement with Black Mountain.
The sale allows Panoramic to focus its efforts on the Savannah project after the mine was put on care and maintenance in 2016 due to weak nickel prices.
Panoramic decided to move forward with the Savannah restart after completing an updated feasibility study at the project last October.