NQ Minerals had already committed £450,000 to Tasmania Energy Metals via three recent convertible loans.
The terms of this loan package have now been amended and Tasmania Energy Metals has extended NQ Minerals' exclusivity period up to 31 October 2019, during which period NQ Minerals has the right to acquire an option to acquire all of Tasmania Energy Metals' assets.
These include nickel-cobalt exploration and mining licenses and 100% control of the integrated minerals processing facility currently being developed to treat material from NQ’s Hellyer mine.
The option would have a term of nine months and could be exercised by the issue of shares in the company to a value of £5.5 million.
As part of this further strategic investment Tasmania Energy Metals and NQ Minerals will continue work on developing their plans for an integrated facility. This facility would utilise the main by-product from the treatment of the pyrite/precious metals concentrate produced from the Hellyer mine, being sulphuric acid, in the production of nickel and cobalt salts for sale into the electric vehicle battery market.
Sulphuric acid is the largest single cost in the treatment of lateritic nickel-cobalt deposits. The facility would also enable NQ to directly recover the precious and base metals contained in its pyrite/precious metals concentrate.