Pacific Nickel Mines to Sell Kolosori Nickel Project to Green Rock

Green Rock Acquires Kolosori Nickel Project from Pacific Nickel Mines

Pacific Nickel Mines (PNM) has finalized an agreement to sell its Kolosori nickel project in the Solomon Islands to Green Rock through a share sale and purchase agreement (SPA). The transaction, executed via PNM’s subsidiary Pacific Nickel International (PNI), involves transferring 100% ownership of the project to Green Rock.

Located on Isabel Island, the Kolosori nickel project is a direct shipping ore (DSO) nickel laterite operation, recognized for its high-grade potential. PNM currently holds an 80% interest in both Pacific Nickel Mines Kolosori (PNMK), the project operator, and Pacific Nickel Mines Varei, which owns the nearby Lejevo project. The sale also includes a key component—a Glencore deed of release that frees PNM from liabilities associated with the $22 million secured facility, plus about $8.6 million in accrued interest.

Glencore Deed and Royalty Agreement Strengthen Transaction Terms

The Glencore deed of release becomes effective once the SPA completes, marking a major financial reset for Pacific Nickel Mines. This release terminates PNM’s obligations under Glencore’s secured facility agreement, which had originally financed the Kolosori project’s development and was later expanded to $25 million. GRP & Associates has agreed to guarantee the buyer’s obligations under the SPA, ensuring a structured transaction process.

Meanwhile, Pacific Nickel International has secured a 1% royalty agreement with Green Rock, entitling PNM to royalty payments on nickel shipments exceeding 170,000 tonnes per month, provided the Shanghai Metals Market benchmark price stays above $72 per tonne. This structure allows PNM to maintain financial exposure to potential upside in global nickel prices, even after divesting the project.

Following a comprehensive operational review and consultation with Glencore, Pacific Nickel decided to cease operations at Kolosori, citing ongoing operational challenges and a soft nickel market outlook. The company emphasized that the sale aligns with its strategic goal to preserve value and strengthen liquidity amid a volatile global nickel environment.

SuperMetalPrice Commentary:

The sale of the Kolosori nickel project marks a decisive shift for Pacific Nickel Mines, reflecting both market pressures and the ongoing realignment of nickel assets in the Asia-Pacific region. As weak nickel prices continue to challenge smaller producers, strategic divestments like this highlight the growing influence of private capital and mid-tier investors such as Green Rock. With a royalty link to future production, Pacific Nickel retains a stake in the sector’s recovery—positioning itself for future opportunities as nickel demand from the EV and stainless-steel markets rebounds.