PHILLIMON MMESO
The Canadian company Premium Nickel Resources (PNR) which has completed the Exclusivity Memorandum of Understanding (MOU) with the liquidator is now moving with intention to buy BCL Limited assets which include BCL and Tati Nickel Mines.
A team of experts with expertise in financials, technical and operational matters from the Canadian company Premium Nickel Resources are said to have arrived in Botswana to examine the physical infrastructure in detail of both BCL and Tati Nickel Mines in preparation for purchasing.
Some of the engineers are said to be from North American Nickel, which is a shareholder in PNR.
Contacted for a comment PNR Country Director Montwedi Mphathi could not confirm nor deny that their experts have arrived, indicating that they have to brief their superiors first of any developments.
Information gathered by this publication has shown that PNR has engaged G Mining Services, a Canadian based firm specialising in mining consultancy.
Asked why they have been given an extra six months to do due diligence, Mphathi revealed that it will include negotiations to purchase the assets.
“In our indicative bid we had asked for four months. It took nine months to evaluate the indicative bids and give access to the preferred bidder to start the due diligence. We have been looking at the resource information in the data room and now coming to validate the same on site. We will also examine the physical infrastructure in detail in preparation to buy,” said Mphathi.
He said during this period, they will complete an environmental assessment, a metallurgical study, a review of legal and social responsibilities, a review of the mine closure and rehabilitation plans and an on-site inspection of the legacy mining infrastructure and equipment that has been under care and maintenance.
“Concurrent with this due diligence programme PNR will negotiate definitive agreements on the prioritised assets that will be included in the asset purchase agreement with the Liquidator,” said Mphathi.
He said if the studies can confirm that the mines can be resuscitated, they will make an offer to government through the liquidator.
Mphathi said it will take some time before the mine can be opened as they will shift to pre-feasibility study followed by a bankable feasibility study and putting up infrastructure, securing markets and restarting production.