North American Nickel Inc. has signed an exclusivity agreement with Minelco AB, a subsidiary of Swedish iron producer LKAB Minerals, for the Seqi port on the southwest coast of Greenland.
Exclusivity agreement and the Seqi port facility
North American Nickel has entered into an exclusivity agreement with Minelco that provides the company the opportunity to acquire 100-per-cent ownership of Minelco's deepwater Seqi port in southwestern Greenland.
North American Nickel is engaged in the continued exploration for economic nickel sulphide deposits at its Maniitsoq project in southwestern Greenland. The Seqi port is favourably located in the Niaquungunaq (Greenlandic) or Fiskefjord (Danish) fjord, proximal to North American Nickel's southern property boundary. It was built by LKAB Minerals, a subsidiary of Minelco, specifically for the transportation of olivine from its Seqinnersuusaaq or Seqi mine. In this regard, the port was amenable to dock-and-load Panamax vessels to 60,000 tons. The port is accessible year-round due to limited sea ice cover.
This agreement grants North American Nickel the sole right until the end of February, 2015, to undertake due diligence of the port and to conclude the final assignment terms with Minelco. The successful completion of this transaction would provide the company with the flexibility of a secure operational hub.
In addition to the technical due diligence, North American Nickel is continuing to evaluate the potential direct cost benefits, as well as the reduction in project time, cash flow management and risk, surrounding the deepwater all-year access facilitated by the Seqi port, for any future economic development of nickel sulphide deposits at its Maniitsoq project.