|Nickel Content||Indonesia HPM Price* (35% Moisture Content)|
*HPM price is Indonesia’s own domestic nickel benchmark price per wet metric ton that is revised monthly. HPM prices can be retrieved here.
[28 May 2021]
US$30m Investment Partnership With Ganfeng Lithium
We have a definitive subscription agreement with GFL International Co., Ltd, a subsidiary of Ganfeng Lithium. GFL will subscribe for exchangeable bonds in aggregate principal amount of US$15 million.
GFL also has the option to purchase option shares at an aggregate consideration of US$15 million. In total, GFL will be investing US$30 million in Silkroad Nickel.
With the additional capital provided by GFL, our financial and liquidity positions can be strengthened, which will allow us to expand our upstream mining businesses and downstream smelter production plans. Moreover, we are able to pursue strategic partnership initiatives in the EV battery space in the future with Ganfeng Lithium, allowing us to bolster our downstream business operations and improve our profit margins.
The interest rate of the bonds is 7% per annum, to be paid annually in cash. GFL, at its sole option, has the right to exchange all of the exchangeable bonds for a 25% equity interest in FE Resources (FER), a wholly-owned subsidiary of Silkroad Nickel.
GFL’s exchange rights and option shares allow GFL to have 50% of the total enlarged issued share capital of FER after the issuance of the new shares.
On 22 June 2021, as part of the investment, we have agreed to allot and issue, and GFL has agreed to subscribe for, an aggregate of 6m new ordinary shares at an issue price of approximately S$0.44 for a total consideration of S$2.64m.
For a more detailed understanding of our subscription agreement with GFL, do kindly refer to our SGX announcement here.
[8 April 2021]
Completion of First Shipment of Nickel Ore to Tsingshan Group
Silkroad Nickel completed the delivery of our first shipment of 7,582 metric tonnes of nickel ore for March 2021 under the offtake agreement with PT Ekasa Yad Resources, a Tsingshan Group company.
Exploration & Production Licenses for a 1,301 Hectare Nickel Mining Concession in Morowali, Central Sulawesi, Indonesia.
We are in the midst of preparing for the commencement of NPI production operations at our Blast Furnace and Rotary Kiln Electric Furnace facilities.
We are exploring and discussing partnership opportunities with major EV battery players as we strive to be involved in the supply chain with our nickel resources.