African Nickel Limited is in search of funding, ranging between US$2.5 million and US$5 million, to support the expansion of its Kunene Nickel Project located in Namibia.
With a 75% interest in EPLs 7609 and 7610, where the project is situated, the company is also negotiating to acquire EPL 4361 or establish a joint venture or royalty agreement with the holder.
The Kunene Nickel Project has revealed significant potential, with an estimated yield of 91.60 Mt identified on the surface of the Ombuku North area. Preliminary test work has highlighted the presence of nickel, copper, cobalt, and platinum-group metals.
Anticipating further exploration success, the company plans to commence drilling and exploration activities, aiming to potentially quadruple the current estimated yield to approximately 366.4 Mt.
An investment of US$2.5 million will facilitate additional drilling at Kunene’s Ombuku North target, resource model updates, and the completion of a preliminary economic assessment.
Furthermore, the company aims to conduct a study and declare a maiden resource at Ombuku North within six months of securing funding.
Meanwhile, a US$5 million equity investment will support drilling activities at the Ombuku South target and the declaration of a maiden resource for this area.
African Nickel emphasizes that its exclusive investor, Q Global Commodities (QGC), is facing cash flow challenges affecting all South African exporters due to infrastructure issues.
Founded in 2006 by Rudolf de Bruin and Dr. David Twist, African Nickel holds a 75% share in Nitomic Mineral Resources (Pty) Ltd., the operator of the Kunene Nickel Project.
The company inherited mineral exploration data from Anglo-American Corp., enabling extensive exploration across multiple African countries.
Initial drillings by Anglo-American at the Ombuku prospect laid the groundwork for African Nickel’s subsequent exploration efforts.
With ongoing geophysical surveys, drillings, and metallurgical test work, African Nickel is steadily advancing towards its goal of declaring a significant maiden-compliant resource by the first half of 2024.
