Helix Resources Ltd (ASX:HLX) chair Mike Rosenstreich tells Proactive the company has executed an option agreement with Alchemy Resources to consolidate its nickel-cobalt assets in New South Wales under 100%-owned subsidiary Ionick Metals Ltd ahead of the latters planned spinout. The agreement sees Helix acquiring 80% of Alchemys interest in the West Lynn Nickel Laterite Project, an advanced project south of Nyngan in central NSW with an inferred mineral resource estimate (MRE) of 180,000 tonnes of nickel and 11,000 tonnes of cobalt. This acquisition has almost doubled Ionicks resource inventory to around 40 million tonnes and is key to securing external funding for its laterite nickel and cobalt business.
This option with Alchemy completes significant local consolidation of nickel-cobalt assets in the region and underpins a planned spinout of Ionick Metals from Helix, Rosenstreich said.
We appreciate the support of Alchemy to combine these nickel-cobalt assets into what we plan to be a stand-alone vehicle, Ionick Metals, to commercialise them.
A key objective for Ionick will be to define a large-scale high-grade mineral resource estimate greater than roughly 80 million tonnes.
We think this is a threshold for a meaningful scale nickel project in terms of production output and mine life to initiate the appropriate feasibility work.
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Helix Resources Ltd
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