Key Capital to provide $8.5m for Papua nickel project

By Romel S. Gurky

US equity funder and resources streaming firm Key Capital Corp said that it has finally agreed to fund a nickel project in Indonesia?s Papua Province following the completion of initial due diligence and site visit.

?The project requires a first phase funding commitment of US$3.25 million to proceed and a further $5.25 million in a second phase funding,? the company said in a statement Monday.

?Following funding and an earn-out payment to a current major owner, Key Capital will hold a 75 percent interest in the project,? it added.

Key Capital first announced its plan to fund the project in September of last year, which was subject among others to the company being satisfied with the result of a due diligence process.

Elsewhere, Key Capital said in the statement that the nickel project in Jayapura, Papua, seeks to process nickel laterite and underlying saprolite. The concentrate will then either be sold within Indonesia, or the project interests will enter into agreement for rotary kiln arc furnace value add processing through a joint venture or similar structure.

Editing by Reiner Simanjuntak