Blackstone Minerals (ASX:BSX) invests AU$2.75M in NICO Resources

Australian mineral exploration company Blackstone Minerals Limited (ASX:BSX) advises that the company has made a strategic investment in NICO's largest underdeveloped nickel projects.

On the development, shares of BSX picked up, trading at AU$0.72 each on ASX, up 4.35% with a market capitalisation of AU$310.22 million.

BSX’ investment in NICO

Blackstone has invested in NICO Resources Limited, which has recently completed its initial public offering, and it has marked its entry in the official list of ASX on 17 January 2022. The initial investment of AU$2.75 million will generate a return of 15.11% interest in the common equity as per Blackstone.

Nickel sulphide resources are declining continuously on a global level, and therefore investment in the nickel laterite projects will play a crucial role in the lithium-ion battery industry. Moreover, there is an alignment in the ambitions of both companies to develop sustainable mining operations.

NICO’ business

NICO holds three exploration licenses covering Mt Davies, Claude Hills and Wingellina projects located in Central Australia. Claude Hills and Wingellina have a JORC compliant Probable Reserve of 1.56 megatons of nickel and JORC compliant Mineral Resources of 1.95 megatons of nickel.

The Central Musgrave Project of NICO

Previously, the Central Musgrave Project was owned by Metals X Limited and then sold to NICO. The sale was completed on 7 January 2022.

The Central Musgrave project of NICO is identified as the largest undeveloped nickel resource. Major battery players like Samsung and Posco had shown significant interest in the project. As per Blackstone, the project has the potential to add to the growing relationships between South-East Asia and Australia.

Metallurgical test work programs at the location highlighted the potential of high-quality nickel and cobalt sulphates, mixed nickel and cobalt sulphides, mixed nickel sulphates, to name a few.

Managing Director of Blackstone, Scott Williamson, commented on the development,

Bottom Line

The strategic investment in NICO seems to generate a significant amount of return for Blackstone, and the acquisition might impact the company’s quarterly performance. Therefore, BSX performance will be on the radar of investors.