MINDORO NICKEL PROJECT STRATEGIC TRANSACTION ADVISORS ENGAGED
Intex Resources ASA is pleased to announce that it has engaged CIBC World Markets (CIBC) as a financial advisor, and the law firm Wiersholm, Mellbye & Bech (Wiersholm) as its legal advisor, to assist the company with its stated goal to conduct a potential strategic transaction for its main asset, the world class Mindoro Nickel project, located on the island of Mindoro in the Philippines.
As previously announced, Intex Resources has received the Mindoro Nickel Definitive Feasibility Study (DFS) which was completed by Aker Solutions in February 2010. According to the DFS, the estimated annual production from Mindoro Nickel is 52 700 tonnes of LME-grade nickel briquettes, 15 920 tonnes of cobalt sulphate, 74 100 tonnes of chromite concentrate, and 147 100 tonnes of ammonium sulphate. Other potential marketable products include zinc sulphide (1 490 tonnes per annum) and electricity. Power will be generated from steam produced by burning sulphur rather than fossil fuel. This will produce 110MW, of which 90MW will be used by the plant.
The Mindoro Nickel DFS estimates a capital cost of USD 2 455 million, including a contingency of USD 339 million, which gives the project a low capital intensity of USD 21 per pound nickel annually. The DFS also estimates a direct cash cost of USD 2.11 per pound nickel metal, and a direct cash cost after credits of USD 0.56 per pound of nickel metal. This makes the project a substantial low cost producer of nickel close to the Asian markets.
Based on this study, Intex has calculated an estimate of after tax project IRR of 23.6%, and an estimated after tax NPV of USD 3 293 million (8%) at a long-term nickel price of USD 8.25 per pound.
For further information and particulars of the DFS please refer to our announcement made on February 19, 2010 which hereby is incorporated by reference, including the disclaimer contained therein.
CIBC is a leading global metals and mining investment bank with an in-depth knowledge of both the global nickel industry and the mining framework of The Philippines.
Wiersholm is a leading Norwegian law firm with a strong focus on international transactions and extensive experience in assisting publicly listed companies throughout such processes.
Intex Resources ASA is a diversified mineral exploration company based in Oslo Norway. The company is listed on the Oslo Stock Exchange (OSE:ITX), and is dedicated to the responsible development of natural resources.
Erlend Grimstad
President & CEO
Intex Resources ASA
For further information please contact:
Andrea Båsen, VP Corporate Development & IR
Phone: +47 23 11 33 40
Mobile: +47 412 39 704
Email: ab@intexresources.com
Intex Resources ASA
Munkedamsveien 45 A
0250 Oslo
Norway
NO 976 094 875 MVA
Phone: +47 23 11 33 44
Fax: +47 23 11 33 45
The Mindoro Nickel DFS estimates a capital cost of USD 2 455 million, including a contingency of USD 339 million, which gives the project a low capital intensity of USD 21 per pound nickel annually. The DFS also estimates a direct cash cost of USD 2.11 per pound nickel metal, and a direct cash cost after credits of USD 0.56 per pound of nickel metal. This makes the project a substantial low cost producer of nickel close to the Asian markets.
Based on this study, Intex has calculated an estimate of after tax project IRR of 23.6%, and an estimated after tax NPV of USD 3 293 million (8%) at a long-term nickel price of USD 8.25 per pound.
For further information and particulars of the DFS please refer to our announcement made on February 19, 2010 which hereby is incorporated by reference, including the disclaimer contained therein.
CIBC is a leading global metals and mining investment bank with an in-depth knowledge of both the global nickel industry and the mining framework of The Philippines.
Wiersholm is a leading Norwegian law firm with a strong focus on international transactions and extensive experience in assisting publicly listed companies throughout such processes.
Intex Resources ASA is a diversified mineral exploration company based in Oslo Norway. The company is listed on the Oslo Stock Exchange (OSE:ITX), and is dedicated to the responsible development of natural resources.
Erlend Grimstad
President & CEO
Intex Resources ASA
For further information please contact:
Andrea Båsen, VP Corporate Development & IR
Phone: +47 23 11 33 40
Mobile: +47 412 39 704
Email: ab@intexresources.com
Intex Resources ASA
Munkedamsveien 45 A
0250 Oslo
Norway
NO 976 094 875 MVA
Phone: +47 23 11 33 44
Fax: +47 23 11 33 45
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