Alliance Nickel Extends $4M Loans, Confirms $1.5B NPV for NiWest Project
Alliance Nickel has strengthened its financial position with an additional A$1.2 million unsecured loan and extended existing facilities, while reaffirming the commercial viability of its NiWest Nickel-Cobalt Project through a comprehensive Definitive Feasibility Study.
- Secured additional A$1.2 million unsecured loan facility from major shareholder and directors
- Extended existing A$4 million loans to June 2026 with capitalised interest
- NiWest DFS confirms 35-year mine life with low-cost, sustainable nickel and cobalt production
- Strategic partnerships with Stellantis and ongoing talks with Samsung SDI and others
- Quarterly exploration spend of $312,000; project remains incident-free on health and safety
Financial Strengthening Amid Market Challenges
Alliance Nickel Limited (ASX, AXN) has fortified its balance sheet by securing an additional A$1.2 million in unsecured loan facilities from its major shareholder Zeta Resources and company directors. This comes alongside the extension of existing A$4 million loans to June 2026, with interest capitalised until maturity. The move signals strong lender confidence in Alliance’s long-term vision for the NiWest Nickel-Cobalt Project, despite prevailing nickel market headwinds.
NiWest Project, A Sustainable, Cost-Competitive Battery Metals Source
The NiWest Project, located in Western Australia’s Eastern Goldfields, remains the cornerstone of Alliance’s strategy. The Definitive Feasibility Study (DFS) completed in November 2024 confirmed the project’s commercial attractiveness, highlighting a 35-year mine life with average annual production of approximately 20,000 tonnes of contained nickel and 1,600 tonnes of contained cobalt over the first 12 years.
NiWest’s processing approach utilises heap leaching technology, validated by recent metallurgical testwork, offering a simpler, safer, and lower capital cost alternative to traditional High Pressure Acid Leach methods. This positions NiWest in the first cost quartile globally, with an All-In Sustaining Cost (AISC) of US$4.84 per pound of nickel, well below current market prices.
Strategic Partnerships and Market Positioning
Alliance continues to advance strategic partnerships critical to NiWest’s development. The company maintains a binding five-year offtake agreement with global automaker Stellantis, covering roughly 40% of future production. Additionally, discussions with Samsung SDI and other potential investors are ongoing, reflecting growing interest in securing battery-grade nickel and cobalt supply chains amid the global EV transition.
Despite nickel prices facing pressure from oversupply and subdued demand, particularly from China and Indonesia’s elevated output, Alliance remains optimistic. The company’s low-cost production profile offers resilience against market volatility, with forecasts suggesting nickel prices will fluctuate between US$15,000 and US$15,700 per tonne in 2025.
Operational and ESG Highlights
During the June quarter, Alliance invested $312,000 in exploration and evaluation activities, focusing on metallurgical testwork and tenement administration. The NiWest Project maintained an incident-free safety record, underscoring the company’s commitment to health, safety, and environmental stewardship. Alliance also acknowledged the custodianship of the Nyalpa Pirniku Traditional Owners, reflecting ongoing respect for cultural heritage.
Looking Ahead
Alliance Nickel’s recent funding success and reaffirmation of NiWest’s robust feasibility underpin its readiness to advance development. With strong strategic partnerships and a competitive cost base, the company is well-positioned to navigate the complexities of the nickel market and capitalize on the accelerating demand for critical battery metals.
Bottom Line?
Alliance Nickel’s strengthened funding and validated project economics set the stage for NiWest’s next development phase amid a challenging nickel market.
Questions in the middle?
- How will Alliance progress funding and final investment decisions for NiWest development?
- What impact will nickel market volatility have on project timelines and financing terms?
- How might ongoing strategic discussions with Samsung SDI and other partners evolve into binding agreements?
