Under the original 2005 agreement, Glencore agreed to purchase all the ore from Lockerby. The changes to the agreement provide benefits to both parties, including simplification of the terms, structure and timing of the settlement.
“We are very pleased to have been able to amend and simplify our off-take agreement with Glencore through working collaboratively with our partner to craft an arrangement that benefits both companies,” said Thomas Boehlert, president and CEO of First Nickel, in a news release. “The amended agreement provides FNI with greater certainty regarding its cash flow forecast and provides Glencore with increased operating flexibility.”
The Lockerby Mine is expected to produce at a rate of approximately 10 million pounds of payable nickel and approximately 7 million pounds of payable copper annually. In addition to the Lockerby Mine, First Nickel owns exploration properties in the Sudbury Basin, Timmins, and the Belmont region of Eastern Ontario.