Nickel Industries' Acquisition of Additional Interest in ENC HPAL Project

Nickel Industries Limited (ASX: $NIC) has completed the acquisition of an additional 13.75% interest in the Excelsior Nickel Project (ENC), increasing its equity interest in the Project to 27.5%. The acquisition involved a cash payment of US$316.3M to acquire shares in the Singaporean incorporated holding company, Excelsior International Investment Pte. Ltd, the ultimate owner of ENC. This increase in equity interest follows earlier payments totaling US$316.3M for the initial 13.75% interest in the Project. The acquisition payment was facilitated through the drawdown of bank financing facilities with PT Bank Negara Indonesia (Persero) Tbk (BNI) and the repayment of the remaining principal of the Senior Unsecured Notes April 2024, amounting to US$244,918,000, plus interest of US$8,003,920.

Executive Commentary on the Acquisition

The Managing Director of Nickel Industries expressed satisfaction with the completion of the acquisition, emphasizing the strategic importance of increasing the equity interest in the Excelsior Nickel Project. The acquisition aligns with the company's commitment to sustainable operations and its transition towards focusing on the EV battery supply chain. The Managing Director further highlighted the diversification of the company's production and the reduction of its carbon emissions profile as key outcomes of the increased equity interest in the ENC HPAL project.

Summary of Nickel Industries' Announcement

Nickel Industries (ASX: $NIC) has successfully increased its equity interest in the Excelsior Nickel Project (ENC) to 27.5% through the acquisition of an additional 13.75% interest. The acquisition, facilitated by a cash payment of US$316.3M, reflects the company's strategic decision to further invest in the next-generation HPAL project, demonstrating its commitment to sustainable operations and the EV battery supply chain. The completion of this acquisition marks a significant step in Nickel Industries' transformative journey, with the ENC project expected to produce approximately 72,000 tonnes of nickel per annum, contributing to the diversification of the company's production and the reduction of its carbon emissions profile. The successful acquisition underscores the company's ambitions and goals in aligning with the evolving market demands and its commitment to sustainable and environmentally conscious operations.