JEJEVO NICKEL PROJECT
In December 2019 Malachite Resources Limited (Malachite) entered into a Share Subscription Agreement with Sunshine Minerals Limited (Sunshine) to acquire up to a 15% equity interest in Sunshine. Sunshine is a private company incorporated in the Solomon Islands, which owns 80% of Sunshine Nickel which holds PL 01/18 located on the south coast of Santa Isabel Island. The remaining 20% of Sunshine Nickel is owned by local land owners. The Jejevo Nickel Project is located within the PL 01/18 project area.
Malachite has the right to earn the 15% equity interest in Sunshine in two tranches; the first is a 7.5% equity interest by spending A$100,000 on the project and a further 7.5% equity interest by spending a further A$125,000 on the project.
Malachite is pleased to announce that it has met its expenditure commitments for the first tranche and has now earned a 7.5% equity interest in Sunshine.
In addition, Malachite is pleased to confirm that it has extended its exclusivity arrangement with Sunshine from 31 March 2020 to 30 September 2020.
The Jejevo Nickel Project is an advanced stage direct shipping ore nickel laterite project with excellent potential for development. The project was previously drilled in 2013 and the initial objective is to carry out sufficient work to confirm a 2012 JORC Resource at the earliest opportunity.
The Jejevo Nickel Project has a number of positive aspects including its close proximity to the coast, no processing requirements, low capital route to direct shipping ore production and local landowner support. It is envisaged that mining of the project could potentially commence within 2 years.