Nickel Asia Corporation (NAC) has sealed its divestment from Coral Bay Nickel Corporation (CBNC) through a Share Purchase Agreement (SPA) with its longtime Japanese partner, Sumitomo Metal Mining Co. Ltd. (SMM).
“NAC discloses that it has jointly signed a Share Purchase Agreement (SPA) with SMM effective today, for the sale of all of the CBNC Shares in accordance with the terms and conditions of the SPA,” said the firm in its regulatory filing on January 31 of this year.
NAC confirmed that it has signed an agreement with Sumitomo Metal Mining Co. Ltd. (SMM) to sell its 15.625% stake in Coral Bay Nickel Corporation (CBNC), with SMM already holding the remaining 84.375% of the company.
NAC’s sale price for its CBNC shares reflects their recorded value in the company’s financial statements as of September 30, 2024.
In an earlier statement, NAC said that divesting its minority stake aligns with its strategy to concentrate on upstream operations and expand its renewable energy ventures.
NAC is shifting its strategic focus as CBNC struggles with rising operating costs and fluctuating global nickel prices.
Vice President for Treasury and Investor Relations, Andre Dy, emphasized that the volatility in the nickel market has prompted the company to reassess its long-term growth plans. Dy noted that CBNC has faced financial challenges over the past three years due to rising operating costs and declining nickel prices on the London Metal Exchange (LME).
NAC reinforces its long-term sustainability vision by integrating nickel and renewable energy into its growth strategy. With ambitious ESG targets, the company seeks to enhance its market position and secure a top 25 ranking on the PSE by 2025.
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