PNRB closes BCL transaction, hires Operations Chief to lead

On February 10, 2022is pleased to announce that it has closed the asset purchase agreement (the “Selebi APA”) transaction with the Liquidator of BCL Limited (“BCL”) to acquire the Selebi and Selebi North nickel‑copper‑cobalt (“Ni‑Cu‑Co“) Mines (together, the “Selebi Mines”). (See News Release dated September 28, 2021). The transfer of ownership to the Company of the Selebi Mines and related infrastructure has been finalized and work programs are expected to begin immediately.  PNRB is also pleased to announce that it has appointed Mr. Boris Kamstra as Chief Operating Officer of the Company. 

The Company began comprehensive due diligence programs the Selebi Mines in March 2021 following being selected as the preferred bidder in each of the liquidation processes and entering into a memorandum of understanding (“MOU”) providing for a six-month exclusivity period. During the exclusivity period the Company completed additional work and continued negotiations on the Selebi APA.

PNRB CEO Montwedi Mphathi commented “The execution of the Selebi Mines transaction will allow PNRB to focus on understanding the character and size of the acquired assets while simultaneously de‑risking the assets to fast track the redevelopment to become a modern, sustainable producer of battery metals. I am very pleased to welcome Mr. Kamstra to our team in his new position as COO, and I am confident his depth of experience in the mining industry will help drive the continued growth of the Company.”

Since executing the MOU in March 2021, PNRB has been collecting new information, including metallurgical sampling of approximately 700 kgs of fresh representative ore. The subsequent metallurgical testing, carried out at SGS Lakefield, confirmed our redevelopment plan for the Selebi Mines to produce separate copper and nickel-cobalt concentrates.  

PNRB executed the Selebi APA in September 2021 and promptly entered into a 120-day closing period. During the closing period, PNRB has continued to acquire new data in preparation to begin an extensive exploration program to define the upside potential of the remaining resources at both Selebi and Selebi North.

The Selebi Mines include two shafts and related infrastructure (rail, power and water). Shaft sinking and plant construction started in 1970. Mining concluded in October 2016 when the operations were placed on care and maintenance due to a failure in the separate Phikwe processing facility. The Selebi Mines were subsequently placed under liquidation in 2017.

The proposed work plan for the Selebi Mines includes diamond drilling which is expected to be ongoing for up to 18 months. During that time, additional metallurgical samples will be collected and sent for more detailed studies. The underground infrastructure at Selebi North will be upgraded to support the underground drilling program as well as improve health & safety at Selebi North.

The Company has appointed Mr. Boris Kamstra as Chief Operating Officer as it transitions the Selebi Mines from care and maintenance to operational mines. Mr. Kamstra is a seasoned leader in the mining industry, with over 30 years of experience in senior and executive roles. Formerly, he was the CEO for Alphamin Resources Bisie tin mine in the DRC where he took Alphamin from exploration to a commissioned mine now valued at approximately US$1Bn.

Mr. Kamstra was instrumental in bringing the mine into full operation, leading the engineering, construction, and commissioning teams to a successful start of operations. His workforce for the most part was local, and he was able to integrate strong community involvement as well as an open partnership with a business building approach. Mr. Kamstra is a registered professional engineer with the South African Engineering Council (BSc cum laude from the University of Cape Town). He is also a member of the South Africa Institute of Mining and Metallurgy and holds an MBA from the WITS Business School, University of Witwatersrand.

It is PNRB’s objective to adopt a hiring system that is transparent, fair and accessible to all locals within the surrounding communities, and within Botswana. During the next few months PNRB will be posting all job opportunities to the website www.pnr.co.bw as well as within the community through social media. PNRB encourages individuals to forward resumes to info@premiumnickel.com.  

About Premium Nickel Resources Botswana

PNRB is a wholly owned subsidiary of Premium Nickel Resources Corporation (“PNR”) and is a Botswana registered company. PNRB is led and supported by a skilled team with strong financial, technical and operational expertise to take an asset from discovery through exploration, feasibility study, mine development, to production. The PNRB team have worked on over 100 projects collectively, cumulating over 400 years of resource discoveries, mine development and mine re-engineering experience on projects like BCL.  

PNRB has completed a definitive asset purchase agreement with the Liquidator of BCL Limited to acquire the Selebi, and Selebi North nickel copper cobalt Mines and related infrastructure formerly operated by BCL and separately has executed a definitive asset purchase agreement with the Liquidator of Tati Nickel Mining Company (“TNMC”) to acquire the Selkirk nickel‑copper‑cobalt-platinum-group metals mine and related prospecting licenses and infrastructure formerly operated by TNMC. PNRB is targeting the closing of the Selkirk transaction, and transfer of ownership of the asset, within 120-days.

PNRB continues to monitor the global Covid-19 developments and is committed to working with health and safety as a priority and in full respect of all government and local Covid-19 protocol requirements. PNRB has developed Covid-19 travel, living and working protocols and is ensuring integration of those protocols with the currently applicable protocols of The Government of Botswana and surrounding communities. 

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