Recruitment to start at BCL mine soon

PNRB executes a definitive asset purchase agreement (“APA”) with the Liquidator

BCL mine is finally under the new management of Premium Nickel Resources Botswana ( PNRB), a subsidiary of the Canadian mining giant, Premium Nickel Resources Corporation.

The development comes after PNRB executed a definitive asset purchase agreement (“APA”) with the Liquidator of BCL Limited to acquire the Selebi, and Selebi North ( together the “Selebi Assets”) nickel copper cobalt (“Ni Cu Co”) assets and related infrastructure formerly operated by BCL.

Minister of Mineral Resources, Green Technology and Energy Security Lefhoko Moagi told a news conference Tuesday evening at Mass Media that it is the wish of his government that the liquidation process comes to a close so that Selebi Phikwe residents can finally return to normalcy with professional engineers and technicians who lost their jobs being rehired at the mine.

The press conference was also attended by PNRB Chief Executive Montwedi Mphathi, accompanied by Kneipe Setlhare and Shamil Tumisang Agosi, Manager, responsible for Environment, Social and Governance . There was also the BCL Liquidator Trevor Glaum.

Mphathi told the press conference that they intend to build a world class mine that uses modern technology which shall out- perfom its peers. He said they are also particular about environment and safety standards to attract customers all over the world. They will also develop the mine’s post- life rehabilitation plan. As for salaries Mphathi said they will offer the best and will adopt a recruitment policy that doesn’t necessarily consider qualification but people with the right positive mind.

Between November 2021 and early January 2022 PNRB will be concentrating on closing the court process. For his part, Glaum cautioned that the development at the mine is not an immediate switch on/ swift duty since they still have to do the economic testing.

PNR had submitted its indicative offer to the BCL and TNMC liquidators in June 2020 to acquire the assets of the former producing BCL Mining Complex and separately the TNMC operations located in north- eastern Botswana. On February 10, 2021, PNR was selected as the preferred bidder and on March 22, 2021, PNR entered into a memorandum of understanding providing for a six- month exclusivity period to complete additional work and negotiate the asset purchase agreements.

Mphathi stated that PNRB continues to monitor the global Covid- 19 developments and is committed to working with health and safety as a priority and in full respect of all government and local Covid- 19 protocol requirements. He said PNRB has developed Covid- 19 travel, living and working protocols and is ensuring integration of those protocols with the currently applicable protocols of The Government of Botswana and surrounding communities.

Mphathi said the company is targeting the closing of this transaction, and transfer of ownership of the assets, within 120 days. He stated this week that PNRB is also negotiating a separate asset purchase agreement to finalize terms for any prioritized Tati Nickel Mining Company (“TNMC”) assets that may be purchased. PNRB is a wholly owned subsidiary of Premium Nickel Resources Corporation (“PNR”) and is a Botswana registered company.

“The signing of the APA is yet another encouraging milestone for the Company and for Botswana. The redevelopment of the former BCL Assets is named “Tsholofelo Project,” in recognition of the hope it carries for the people of Selebi Phikwe and the region. Once the transfer of ownership of the assets to PNRB has been finalized, the Company will start an extensive exploration program to fully understand the size and character of the remaining resources.

PNRB will then be able to better optimise its investment towards the creation of a modern low- cost producer of Ni- Cu- Co and the support of a sustained economy for the SelebiPhikwe region,” explained the CEO.

“The Selebi Assets include two shafts and related infrastructure ( rail, power and water). Shaft sinking and plant construction started in 1970. Mining concluded in October 2016 when the operations were placed on care and maintenance due to a failure in the processing facility. PNRB’s redevelopment plan is based on the re- characterization of the remaining resources and the ability to produce both a Cu concentrate and a separate Ni- Co concentrate,” said Mphathi.