Nickel 28 Announces Proposed Ramu Expansion and Related Developments
Nickel 28 Announces Proposed Ramu
Expansion and Related Developments
Toronto, Ontario--(Newsfile Corp. - April 15, 2026) - Nickel 28 Capital Corp. (
TSXV: NKL
) (
FSE:
3JC0
) ("
Nickel 28
" or the "
Company
") today announced that it has been advised by Ramu NiCo
Management (MCC) Limited, the operator of the Ramu Nickel-Cobalt integrated operation in Papua
New Guinea (the "
Ramu Operation
"), that a proposal for development has been lodged with the Mineral
Resources Authority of Papua New Guinea under the Mining Act, detailing a proposed phase II
expansion of the Ramu Operation (the "
Proposed Expansion
").
Based on the application materials supporting the Proposed Expansion that the Company has reviewed,
if completed, the Proposed Expansion would be expected to approximately double the production
capacity of the current Ramu Operation at a projected cost of approximately US$1.6 billion. Among other
things, the Proposed Expansion would be conditional upon the grant of requisite mining leases and
permits by the Government of Papua New Guinea and the execution of certain required agreements with
the Government of Papua New Guinea and other key stakeholders.
Nickel 28 holds its interest in the Ramu Operation through its indirect wholly owned subsidiary, Ramu
Nickel Limited, which is party to certain master and joint venture agreements with MCC Ramu NiCo
Limited ("
MCC"
), the majority joint venture partner, and the other Ramu joint venture partners
(collectively, the "
Joint Venture Agreements
"). In connection with MCC giving effect to and
implementing a qualifying proposal to expand or materially change the Ramu Operation, certain
governance steps under the Joint Venture Agreements are required. Among other things, MCC must
make an offer to purchase from each qualifying minority joint venture partner (including Ramu Nickel
Limited) its respective interest in the Ramu Operation for fair market value. A minority joint venture
partner that does not sell its interest can elect to continue as a partner in the Ramu Operation and either
fund its pro rata share of the prescribed costs (including its share of the expansion costs) or have its
interest diluted using a formula defined in the Joint Venture Agreements. Generally, the dilution formula in
the Joint Venture Agreements compares the development cost of the Proposed Expansion against all
costs (including capital and operating) incurred over the life of the project.
(1)
In parallel with the above
process of determining a qualifying minority joint venture partner's ultimate equity position in the Ramu
Operation, MCC is entitled to exercise its rights under the Joint Venture Agreements to give effect to and
implement the expansion proposal following the expiry of the prescribed offer period.
In light of the Proposed Expansion, which meets the definition of a qualifying proposal under the Joint
Venture Agreements, the Company is currently analyzing and evaluating its various options afforded to it
under the Joint Venture Agreements.
"The Proposed Expansion represents a noteworthy development for Ramu," stated Craig Lennon,
President & Chief Executive Officer of the Company. "Ramu has been a consistent producing operation,
and MCC is an experienced operator and developer of nickel HPAL operations; we are confident that
MCC has the expertise and capabilities to make the Proposed Expansion a success. The Company will
carefully evaluate the options available to it under the Joint Venture Agreements in connection with the
proposed expansion and continue to work constructively with MCC, with a view to maximizing value for
shareholders," he concluded.
Notes
(1) Under the Joint Venture Agreements, if a joint venture party elects not to contribute its
proportionate share of costs for a Proposal, that party's ownership interest in Ramu will be gradually
reduced, or "diluted," on a monthly basis over the period during which the Proposal is being
implemented. Specifically, each month, the party's ownership interest is recalculated by comparing
the total historical costs of the existing Ramu project (excluding costs related to the new Proposal)
against the combined total of those existing Ramu project costs
plus
the costs incurred in
implementing the new Proposal. As spending on the new Proposal increases relative to the base
Ramu project costs, the non-contributing party's interest decreases proportionally. During this dilution
period, the party's share of Ramu project benefits, including its entitlement to product, as well as its
share of ongoing Ramu project costs, will be adjusted each month to reflect its reduced ownership
interest.
This dilution is calculated each month using the following formula: IS(New) = IS(Old) x (EV Project /
EV Project+Proposal), where "IS(New)" is the party's ownership interest following dilution on the first
day of the month, "IS(Old)" is the party's ownership interest on the last day of the previous month, "EV
Project" is the total cumulative Ramu project costs since inception (excluding costs related to the new
proposal), and "EV Project+Proposal" is the total cumulative Ramu project costs inclusive of costs
incurred in implementing the Proposal.
About Nickel 28
Nickel 28 Capital Corp. is a nickel-cobalt producer through its 8.56% joint-venture interest in the
producing long-life Ramu Nickel-Cobalt Operation located in Papua New Guinea. Ramu provides Nickel
28 with significant attributable nickel and cobalt production thereby offering our shareholders direct
exposure to two metals which are critical to the adoption of electric vehicles. In addition, Nickel 28
manages a portfolio of 10 nickel and cobalt royalties on development and exploration projects in
Canada, Australia and Papua New Guinea.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain information which constitutes 'forward-looking statements' and
'forward-looking information' within the meaning of applicable Canadian securities laws. Any statements
that are contained in this news release that are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often identified by terms such as "may",
"should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements in this news release include, but are not limited to: statements
with respect to the Proposed Expansion (including related to the conditions to completion of the
Proposed Expansion and the timing thereof); statements with respect to the Company's potential
alternatives under the joint venture agreements in respect of Ramu in the event that the Proposed
Expansion proceeds; statements with respect to the potential impact of dilution under the Joint Venture
Agreements on the Company's interest in the Ramu project (including any illustrative examples thereof);
and statements with respect to the business and assets of Nickel 28 and its strategy going forward.
Forward-looking statements involve known and unknown risks and uncertainties, most of which are
beyond the Company's control. Should one or more of the risks or uncertainties underlying these
forward-looking statements materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results, performance or achievements could vary materially from those
expressed or implied by the forward-looking statements.
The forward-looking statements contained herein are made as of the date of this release and, other than
as required by applicable securities laws, the Company does not assume any obligation to update or
revise them to reflect new events or circumstances. The forward-looking statements contained in this
release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release. No securities regulatory authority has either approved or
disapproved of the contents of this news release.
Investor Relations Contact Information
:
Nickel 28 Investor Relations
Attn: Brett A. Richards, Director
Tel: +1 905 449 1500
Email:
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/292562