Pacific Nickel Mines continues mining at Kolosori under Glencore finance while progressing a conditional sale of its Solomon Islands assets to Green Rock Limited.
- Kolosori operations maintained with Glencore stockpile financing
- Sale of 80% interest in Kolosori and Jejevo projects to Green Rock Limited for A$1
- Transaction subject to shareholder and regulatory approvals
- ASX suspension remains until compliance and approvals are secured
- Royalty agreement and Glencore loan release integral to sale
Operations Continue Amid Financing Support
Pacific Nickel Mines Limited (ASX:PNM) maintained mining activities at its Kolosori Nickel Project in the Solomon Islands during the March 2026 quarter, with a local contractor continuing ore mining and stockpiling under the project’s mining licence. This ongoing operation is funded through stockpile financing provided by Glencore, which advanced approximately A$2.07 million during the quarter to sustain site activities. Proceeds from nickel ore shipments are being used to repay this financing and cover contractor payments.
Conditional Sale of Kolosori and Jejevo Projects
A significant development is the pending sale of Pacific Nickel’s 80% interest in the Kolosori and Jejevo projects to Green Rock Limited for a nominal A$1. This transaction, executed through Pacific Nickel International Pty Ltd (PNI), is contingent on several conditions precedent, including shareholder approval and regulatory clearances in the Solomon Islands. The parties recently agreed to extend the deadline for these conditions to 30 June 2026, reflecting ongoing progress but also the complexity of securing all necessary approvals.
The sale includes a Royalty Agreement under which PNI may receive royalties on future ore shipments from Kolosori, providing a potential ongoing revenue stream despite divesting direct ownership. Additionally, the transaction contemplates a Deed of Release with Glencore International AG, which would discharge Pacific Nickel and its subsidiaries from liabilities under the existing Glencore secured loan facility.
Glencore Loan and Financial Position
Glencore’s involvement remains pivotal. Since late 2023, Glencore has provided a US$22 million secured loan facility to develop Kolosori, with the company yet to commence repayments. During the quarter, Glencore extended further funds amounting to A$0.242 million, and Pacific Nickel anticipates additional funding to support operations. The company is working closely with Glencore to manage creditor impacts and maintain working capital amid challenging nickel market conditions.
ASX Suspension Persists Pending Compliance
Pacific Nickel’s securities remain suspended from quotation on the ASX under Listing Rule 17.3.1 since June 2025. The suspension will continue until the exchange is satisfied that the company complies with listing rules, including continuous disclosure obligations, and that reinstatement is appropriate. The timing of resumption is closely tied to the completion of the sale to Green Rock and the release from Glencore loan liabilities, underscoring the regulatory risks still facing the company.
Meanwhile, Pacific Nickel has not made payments to directors or executives during the quarter and is exploring other business opportunities beyond the Kolosori and Jejevo assets.
Bottom Line?
The sale of Kolosori hinges on regulatory and shareholder approvals, while Glencore’s financing and ASX suspension status continue to shape Pacific Nickel’s near-term prospects.
Questions in the middle?
- Will Pacific Nickel secure all regulatory and shareholder approvals by the extended June deadline?
- How will the royalty agreement with Green Rock impact future revenue streams if the sale completes?
- What alternative business opportunities is Pacific Nickel exploring amid ongoing operational challenges?