31 Aug Brazilian Nickel PLC Completes Further Capital Raising
Brazilian Nickel PLC (“BRN”) completes a further capital raising of US$24.8 million to advance its Piauí Nickel Project in Brazil
- In addition to the US$27.57 million of equity funding completed in December 2020, BRN has completed further equity investments totalling US$24.8 million, of which US$17.5 million is from new investor Resource Capital Fund VII L.P. (“RCF VII”) and US$7.3 million is a follow-on investment by major investor TechMet Limited (“TechMet”)
- The combined investments from December 2020 and this month amount to US$52.37 million which will allow BRN to continue to accelerate the development of the Piauí Nickel Project (“The Project”)
- The latest investment completes both the funding for BRN’s bankable feasibility study (“BFS”) for the Project, and the necessary finance to construct and operate BRN’s PNP 1000 project, a project for small-scale economic production of nickel and cobalt, thereby creating employment in one of Brazil’s most economically deprived and underdeveloped regions, and delivering high environmental performance and social governance standards
- RCF’s nominee, Calum Semple, has been appointed to the Board as Non-Executive Director and brings RCF’s considerable technical and major project construction experience to the Company
BRN is pleased to report the completion of an equity fundraising totalling US$24.8 million on 26th August 2021. The investment will be made in three tranches with an initial tranche of US$15 million, followed by two further tranches of US$4.9 million each. Following completion of the three investment tranches, RCF will have a shareholding in BRN of 11.27%, TechMet will have maintained a shareholding of 31.22%, and Monazita Resources Limited (following a transfer of the shareholding by Magenta Fundo De Investimento Mulimercado Investimento No Exterior Crédito Privado or “Magenta”) will hold 20.39%.
BRN will use the funds to complete the expansion of its existing demonstration plant to provide early, small scale production from the PNP 1000 project. Having previously deployed the equity investment received in December last year, BRN is very pleased to report that 65% of the BFS has already been completed as well as over 40% of the PNP 1000 construction.
Both investors have also underlined their ongoing support of BRN by entering into Option Agreements to subscribe for up to a further US$17 million of equity conditional on future key events in BRN’s development.
Following completion of the first tranche of the investment, RCF’s nominee, Calum Semple, has joined the Board as Non-Executive Director.
Mike Oxley, Chief Executive Officer of BRN, said:
“Not only do these investments highlight the confidence in what we believe to be a globally significant Project, but they also signify a hugely successful time period for the Company where we continue to go from strength to strength in developing the Piauí Nickel Project.
“The US$24.8 million raise means that since December, we have successfully secured a total investment of US$52.37 million, allowing for the funding of significant Project milestones such as the delivery of the BFS and the construction of, and eventual production from the PNP 1000 project.
“The continued support in the form of investments, from RCF and TechMet, not only boost the Company financially, but by association, it continues to prove a testament to their belief in the Project, its technology and the Company’s sustainability credentials. RCF hold themselves to the highest of sustainability standards in everything they do, particularly when making investment decisions, which is why their stamp of approval is of particular significance. We look forward to continuing to work alongside our partners as Brazilian Nickel, together with all its stakeholders, work towards sustainability delivering the critical raw materials essential for a green future.
“In addition, we are also pleased that Calum will be joining TechMet’s representative in collaborating with the BRN team, where I am sure that his whole host of skills and experience will prove invaluable. I welcome him to the Board and look forward to working with him as we continue to advance the PNP Project.”
RCF VII’s nominee, Calum Semple, has been appointed as a Non-Executive Director. Calum Semple serves as the Operating Executive for RCF Management L.L.C. (RCF). He is a Chartered Engineer and holds a BSc (Hons) in Engineering from Edinburgh and is a Member of the Canadian Institute of Mining. He is a U.K. and Canadian citizen.
Prior to RCF he has held a number for senior roles in the mining industry, most recently as EVP Ops and a Director on the TMAC Resources board and technical committees. He also serves on the board of RG Gold. In addition to 20 years in industry leadership positions around the world, Calum also spent 14 years as MD and Senior Partner for Global Mining Consulting at PwC. His specialisation throughout his career has been the start-up of new businesses, M&A and turnaround.
About Brazilian Nickel PLC
BRN is a private UK company established in May 2013 to develop nickel laterite heap leach projects worldwide, beginning with its flagship Project in Brazil. The BRN team are all highly experienced mining industry professionals with extensive experience in Latin America and worldwide. The team has been developing and commercialising the heap leaching of nickel laterites for over 20 years with a view to building a world class nickel and cobalt producing company.
About the Piauí Nickel Project
The Project is an advanced-staged Battery Metals project with a JORC resource of 72 million tonnes at 1.0% Ni and 0.05% Co, with 73% of the resource in the JORC Measured category. All metallurgical test work in support of a bankable feasibility study is complete and the key environmental permits (Licenças Previas) have been awarded. The project envisages near-term production of separate intermediate nickel and cobalt hydroxide products to supply the surge in demand for these metals in, among other things, electric vehicle batteries. The PNP 1000 project will quick-start operations by expanding the existing demonstration plant at the site, and will allow BRN to benefit from today’s increasingly strong nickel prices.
RCF is a group of commonly managed private equity funds, established in 1998 with a mining sector specific investment mandate spanning all hard mineral commodities and geographic regions. Since inception, RCF has supported 201 mining companies, with projects located in 51 countries and across 32 commodities. Further information about RCF can be found on its website (www.resourcecapitalfunds.com).
RCF has a strong team of investment professionals, with wide ranging industry and technical expertise and a demonstrated history of investments in mining globally. RCF’s track record is based on its ability to pick technically and commercially compelling assets and support management to achieve desired outcomes whilst remaining throughout a source of patient capital. RCF aims to partner with companies to build strong, successful and sustainable businesses and in doing so strives to earn superior returns for all stakeholders.
TechMet Limted is a leading technology metals investment company building a portfolio of world class assets that produce, process and re-cycle the metals (including lithium, nickel, cobalt, rare earths, vanadium and tin) that are critical to the global energy transition and the electric vehicle revolution.”
Contact: [email protected]
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