Quantum Minerals Limited (OTCQB:QMVC) announced that its parent company, First Quantum Minerals Limited, has agreed to sell 30% of Ravensthorpe Nickel to Chilean Ormat Development (OTCQX:ORMZF) for $240 million. This transaction, which includes asset sales, joint venture, general partner and equity investment, is expected to complete in September.
“We have been very pleased to work with Ormat, a proven and experienced nickel producer, and we look forward to having Ravensthorpe become a fully-integrated Western Nickel project,” stated Vince Simpson, Chief Executive Officer of First Quantum Minerals. “This transaction enables us to focus on developing the incremental nickel asset in Mirador and fully leverage the non-jeep business side.”
As part of this transaction, First Quantum will acquire eight world-class long-life nickel properties in West Africa, the Namibian iron ore portion of the Round Mountain project and the Mozambique dredge project. First Quantum has committed to an annual nickel production of 205,000 tons at Ravensthorpe and expects to have first production of nickel at the expanded project in the third or fourth quarter of 2020. The proposed sale is subject to completion of customary regulatory procedures and will be fully financed through First Quantum’s retained cash balance. The transaction is expected to close during the third quarter of 2021.
Ormat is a leader in the business of the development and implementation of high-performance and sustainable products and solutions for global markets, in the development of large-scale energy and environmental smart systems.
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Ormat has established a reputation in the country of South Africa as a developer of sustainable systems, which is embodied in the concept of Integrated Smart Grid across several metropolitan regions. With a low debt to equity ratio and significant free cash flow generation, Ormat continues to invest in products, markets and solutions that support the sustainable energy agenda in the country.
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