$69 postpage LB

Share Price Tumbled As Metminco Bails On Nickel Acquisition

  • October 30, 2018 05:27 AM AEDT
  • Team Kalkine
Share Price Tumbled As Metminco Bails On Nickel Acquisition

Sending its share price down 14 percent in morning trade to $0.3, explorer Metminco has bailed on its acquisition of the Jejevo Nickel Project in the Solomon Islands. Since signing an agreement to buy private company Sunshine Minerals, Metminco (ASX: MNC) had been undertaking ‘due diligence’ on the project which holds an 80 percent of Jejevo — in September.

Gold MTF non-AMP

Metminco told investors that the company was unable to complete due diligence to the required level while continuing to believe the project was attractive and has given notice of its withdrawal from the agreement. It announced to fund the acquisition the explorer no longer needs to raise up to $2.5 million and was “the details of which will be announced to the market shortly it is working towards a new funding strategy”.Â

The company which completed a feasibility on the project in 1972 but never moved to production, Jejevo was owned by mining giant BHP. When legal disputes and a low nickel price saw it leave the Solomon Islands completely, it was also held by Japanese giant Sumitomo Metals Mining up to about 2016. Discussions with major gold miner AngloGold Ashanti in Colombia, Metminco still has its Chuscal gold project, are well advanced to formalize a farm-in/joint venture agreement.

To acquire Sunshine Minerals Limited, the Company announced that it had entered into an agreement on 19 September 2018. The Company has been progressing its investigations since that date, the acquisition is subject to satisfactory completion of due diligence.

As set out in the announcement of 19 September 2018, the Company intends to seek shareholder approval to issue the Placement Options, at the next available opportunity. The company is working towards a new funding strategy, the details of which will be announced to the market shortly.

Minera Hampton Peru SAC, Minera Hampton Chile Limitada, and owns the Mollacas Projects, Vallecillo and Loica Projects are company’s subsidiaries. The stock is trading at a 52-week low and has witnessed a performance change of -88.82% over the past 12 months and declined -12.50% over the past one month. The market capitalization of the company is $3.14 million.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK