Blencowe Resources PLC (LSE:BRES) bought the right to earn in to the Akelikongo nickel sulphide and copper project, which is located near to its Orom-Cross graphite project in Northern Uganda.
The project was previously jointly owned by Rio Tinto and Sipa Resources until May 2020.
The partners spent US$15mln on nickel and copper exploration that included 19,000 metres of diamond, RC and RAB drilling.
An 800 metre strike has already been established.
The acquisition underscores Blencowe's ambition to become a diversified producer of high-quality source materials for the battery metals industry.
"Akelikongo represents a very exciting and low cost entry for Blencowe to add a highly prospective nickel sulphide project to our existing advanced graphite project at Orom Cross,” said Blencowe’s chairman Cameron Pearce.
“Nickel is one of the most sought after metals at the moment and demand is set to soar even higher over the next decade. The structure of the transaction means we are acquiring a nickel discovery with historic spend of US$15mln for just $1.5mln in deferred share consideration, instead ensuring our cash is deployed in advancing the asset and unlocking incremental value.”