While political agendas continue to place strenuous restrictions on conventional automakers to transition away from fossil fuels, the likes of nickel-copper-cobalt-lithium (Ni-Cu-Co-Li) mineral deposits have moved swiftly into global focus, with a need to discover roughly $10 trillion of the four key metals that are essential for manufacturing EV batteries according to the Paris Climate Agreement. According to recent data released from Adamas Intelligence, electric vehicle registrations increased by a staggering 62% in the second half of 2021 alone, accounting for a combined 177.2 GWh of total global battery capacity currently deployed on the roads which represents an astonishing increase of roughly 92% since the year prior.
As we look to the future, it is clear to see that as a globe, we are still in the early stages of adoption towards electric vehicles and other forms of renewable energy that rely on key metals. As an investor, the early identification of exploration companies that offer low risk, high reward potential to add generational wealth to any portfolio can be challenging, but there remains little doubt that markets will increase with demand as the key metals exploration and mining sector is primed and ready to explode in the coming years. One company comes to mind when exploring likely suitors for investment and has recently shown relentless pursuit of asset acquisitions that harness the potential to offer solutions to the current metal’s shortage and sustainability well into the future.
Premium Nickel Resources
Premium Nickel Resources (PNR) is a Canadian company focused on the exploration and development of high-quality nickel-copper-cobalt-Platinum group metals (Ni-Cu-Co-PGMs) mineral deposits in mining friendly jurisdictions that align with the company’s values and principles of maintaining the highest acceptable industry standards. Led by a skilled team with strong financial, technical, and operational expertise in combination with a proven ability to guide an asset from exploration to discovery, PNR continues to focus its efforts on prosperous nickel sulphide discoveries that fit its set of strict criteria. The company is driven by its belief that medium to long term demand for these metals will continue to dramatically increase alongside global urbanization and the eventual transition from combustion to electric motors as the world advances towards a net zero future.
Until recently, PNR has operated as a private Canadian company, but on April 26 the company announced the execution of a Definitive Agreement with the intent to combine Premium Nickel Resources and North American Nickel (NAN), a founding shareholder and publicly traded company, by way of a “Reverse Takeover”. The RTO is currently structured by way of a triangular amalgamation involving PNR, NAN and a wholly owned subsidiary of NAN to be formed. In the news release, references to the “Resulting Issuer” are to NAN after the closing of the RTO.
Prior to announcing the Definitive Agreement and through its wholly owned subsidiary and operator Premium Nickel Resources Botswana (PNRB), the Company announced the closure of an asset purchase agreement with the liquidator of BCL Limited to acquire the past producing Selebi and Selebi North Ni-Cu-Co deposits (the Selebi Mine) in Botswana. The Company did not acquire any of the legacy infrastructure or mines associated with the Phikwe property. Astonishingly, within the same week PNRB negotiated a separate asset purchase agreement with the Liquidator of the Tati Nickel Mining Company to acquire the Selkirk Ni-Cu-Co-PGM Mine, surrounding prospecting licenses and related infrastructure located roughly 75km to the north of the Selebi Mine.
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