Pacific Nickel Mines to sell Kolosori nickel project to Green Rock

Core Points - Pacific Nickel Mines (PNM) subsidiary Pacific Nickel International (PNI) has agreed to sell 100% of its shares in the Kolosori nickel project to Green Rock under a share sale and purchase agreement (SPA) [1] - The Kolosori nickel project is located on Isabel Island and is a direct shipping ore nickel laterite project [1] - PNM holds an 80% stake in Pacific Nickel Mines Kolosori (PNMK), which is the owner and operator of the Kolosori nickel project [1] Financial and Legal Aspects - GRP & Associates has agreed to guarantee the buyer's obligations under the SPA [2] - A significant aspect of the transaction is the Glencore deed of release, which releases PNM from all liabilities under the Glencore secured facility agreement, currently guaranteeing $22 million (A$33.85 million) plus approximately $8.6 million in accrued interest [2][3] - The deed of release will become effective upon completion of the SPA and is a condition precedent to closing the transaction [3] Operational Context - PNM previously announced the cessation of operations at the Kolosori project due to operational challenges and a weak nickel price outlook in the short to medium term [5] - The PNM board concluded that entering into the SPA for the sale of the Kolosori nickel project is in the best interests of the company [5] Royalty Agreement - PNI has entered into a royalty agreement with Green Rock, entitling Pacific Nickel to a 1% royalty on nickel ore shipped from the Kolosori nickel project, contingent on monthly shipments exceeding 170,000 tonnes and the benchmark price on the Shanghai Metals Market averaging above $72 per tonne [4]