Podium Minerals granted creditor approval for acquisition of EVM Nickel assets
Podium Minerals (ASX: POD) has received approval to acquire all the assets of struggling company EVM Nickel, a subsidiary of unlisted UK-based company EV Metals Group.
Approval of a proposed deed of company arrangement (DOCA) submitted by Podium earlier this month was granted by EVM creditors.
The deed covers mineral rights, licences and intellectual property related to the Range Well nickel-cobalt project in Western Australia.
Larger footprint
The DOCA – which is now subject to approvals from the Foreign Investment Review Board as well as the company’s shareholders – is expected to bring Podium a step closer to consolidating Range Well with the nearby Parks Reef platinum group metals (PGM) project, delivering a larger operating footprint for mining activities.
It will also help Podium simplify the development of both projects and provide potential project synergies and cost benefits.
Successful completion of the transaction will see London-listed diversified processor and producer of downstream PGM products Johnson Matthey become a cornerstone shareholder in Podium.
Johnson Matthey is the secured creditor of EVM Nickel and placed it into administration in February.
Asset consideration
Under the terms of the DOCA, Podium will acquire EVM Nickel’s assets for a consideration of 110.7 million shares to Johnson Matthey, held in voluntary escrow for 24 months and subject to Johnson Matthey maintaining at least a 10% equity interest in Podium.
An additional 2.27 million shares will be issued to EVM Nickel on behalf of EV Metals Group, to also be held in voluntary escrow for 24 months.
Podium will also make a $1.17 million payment to EVM Nickel administrator Cor Cordis for fees, costs, project expenses and distribution to creditors.
A 1.5% net smelter royalty will be granted to Johnson Matthey with respect to Range Well only.
Operational benefits
Podium executive chair Rod Baxter welcomed the approval to acquire EVM Nickel.
“The opportunity to acquire a nickel laterite project at the low point of the market and simplify project ownership is expected to provide a number of potential development and operational benefits,” he said.
“We continue to fortify our position, build business resilience, generate substantial know-how on the metallurgical flowsheet for Parks Reef and position for an anticipated metal price recovery.”
Mr Baxter said Podium would now progress shareholder approval and work with Cor Cordis and Johnson Matthey to secure the necessary approvals to complete the transaction.