Junior explorer Metiminco Limited (LON:MNC) is adding a nickel string to its bow with the acquisition of a direct shipping project in the Solomon Islands.
The Jejevo nickel laterite project has an estimated exploration target resource of 10Mt-15Mt at grades of approximately 1.1%-1.3% based on drilling by former licence holders Inco and Sumitumo.
READ: Metminco expects to make announcement on proposed capital raising and acquisition by September 17
Metminco will raise A$3mln to fund both developments of Jejevo, which is on Santa Isabel Island, and its Colombian gold prospects at Quinchia.
The junior added it will cancel its AIM listing following the acquisition due to the cost and low activity in London, though the listing on the ASX will remain.
Kevin Wilson, executive chairman, said: "The acquisition of the Jejevo Nickel Project, gives Metminco exposure to nickel at a time when rising battery manufacture is expected to accelerate demand for the metal.
“We will commence advancing Jejevo as soon as the acquisition completes.
“Together with our Quinchia Gold Project we now have two advanced exploration projects that we believe offer near-term development potential."
Through the deal, Metminco will acquire 100% of the issued capital of Sunshine Metals, which holds 80% of Jejevo, as well as an 80% interest in an early stage bauxite prospect, the Tausere Project, located on the southern coastline of Choiseul Island.