Alliance Nickel Extends $4M Loans, Adds $1.2M in New Funding at 12% Interest
Alliance Nickel has strengthened its financial footing with an additional $1.2 million in unsecured loans and extended existing $4 million facilities to mid-2026, underscoring lender confidence as it advances its NiWest project.
- Additional $1.2 million unsecured loans secured from major shareholder and directors
- Existing $4 million loans extended to June 2026 with interest capitalised
- Loans carry a 12% annual interest rate, capitalised until repayment
- Funding supports ongoing operations and strategic partnership discussions
- Demonstrates strong lender confidence in NiWest nickel cobalt project
Alliance Nickel Strengthens Financial Position
Alliance Nickel Limited (ASX – AXN) has announced a significant financial update, securing an additional A$1.2 million in unsecured loan facilities alongside the extension of existing loans totaling A$4 million to 30 June 2026. This move reflects a vote of confidence from both its major shareholder, Zeta Resources Limited, and company directors, who have jointly provided the new funding.
The new loans are split evenly, with A$600,000 coming from Zeta Resources and A$600,000 from Alliance’s directors. The existing loans, originally due to mature on 31 July 2025, have been extended by nearly a year, with all other terms remaining unchanged. Notably, the loans carry a 12% per annum interest rate, which is capitalised until repayment, allowing the company to preserve cash flow during this period.
Backing the NiWest Project Amid Strategic Talks
Alliance’s Managing Director and CEO, Paul Kopejtka, emphasised the importance of this funding arrangement, highlighting the non-dilutive nature of the loans and the strong support from lenders. The additional capital and extended loan tenure provide the company with the financial runway to continue advancing its flagship NiWest nickel cobalt project, which is strategically positioned adjacent to Glencore’s Murrin Murrin Operations in Western Australia.
The NiWest project is notable for its high-grade nickel laterite resource and access to existing infrastructure, including roads, rail, and gas pipelines. Alliance has completed a Definitive Feasibility Study confirming the project’s technical and economic viability, aiming to produce low-cost, high-quality nickel and cobalt sulphate for the electric vehicle battery market.
Implications for Future Growth and Partnerships
The loan extension and new funding come at a critical time as Alliance continues strategic discussions with multiple potential partners. These talks are essential for the company’s next phase of development and potential project financing. The backing from Zeta Resources and directors signals confidence in Alliance’s long-term objectives and the NiWest project’s potential to meet growing demand for critical battery minerals.
While the announcement does not disclose details about the potential partners or timelines for these strategic discussions, the financial support ensures that Alliance can maintain momentum without immediate pressure to dilute equity or seek alternative financing under less favourable terms.
Bottom Line?
Alliance’s extended funding runway sets the stage for pivotal partnership decisions that could define its future trajectory.
Questions in the middle?
- Who are the potential strategic partners involved in ongoing discussions?
- What are the timelines and milestones expected from these partnership negotiations?
- Could further financing rounds or equity dilution be necessary if partnerships do not materialize?
