“First Quantum expects to make use of the proceeds to scale back the excellent steadiness on its revolving credit score facility because it continues to give attention to debt discount,” the corporate mentioned in a press launch.
The businesses have agreed to judge a strategic partnership to provide battery precursor supplies from manufacturing on the mine.
Underneath the deal, POSCO will obtain a long-term offtake settlement for 7,500 tonnes of nickel in combined nickel-cobalt hydroxide precipitate per yr produced at Ravensthorpe, starting in 2024.
“Right this moment’s transaction could possibly be an instance for future strategic investments within the sector,” mentioned BMO Capital Markets in a notice.
“Because the ‘inexperienced’ financial system positive factors power, provides of crucial uncooked supplies may change into scarce – particularly these provides that are traceable to sustainable and moral mining practices”
Ravensthorpe is a large-scale, open pit nickel and cobalt operation situated in Western Australia.
Nickel manufacturing final yr was 12,695 tonnes.
Noon Wednesday, First Quantum’s inventory was down 7% on the TSE. The corporate has a C$19.5 billion market capitalization.