On June 15, 2022, ASX-listed Pacific Nickel signed an investment agreement with Glencore for a three-year, $22 million investment agreement. U.S. dollar pre-export financing and offtake of four-year production at the Kolosori nickel project in the Solomon Islands.

The offtake agreement may be extended for a further two years by mutual agreement. Offtake prices will be linked to market prices with standard commercial adjustments based on product quality.

Pacific Nickel told shareholders on June 15 that the $22 million in debt financing will include $17 million in construction and $5 million in reserves. The facilities are still subject to Glencore completing its final due diligence, approval of the Kolosori mining license, credit approval and full documentation.

Early works at Kolosori were successfully completed earlier this year, including construction of infrastructure, excavation of test pits to assess mining and storage designs, and calibration of grade control methods, completion of geotechnical assessments, and quarrying Assessment to provide building materials required for dock and road construction.

DFS for the project is scheduled for completion in the second quarter.