NexMetals gets EXIM letter for potential $150M loan

Recently-listed NexMetals Mining (TSXV: NEXM; Nasdaq: NEXM) has received a letter of interest from the Export-Import Bank of the United States (EXIM) for a potential loan of US$150 million to support its redevelopment of two nickel-copper mines in Botswana.

The letter represents “a willingness from the United States to fund critical metals projects in one of Africa’s safest and most stable jurisdictions,” NexMetals CEO Morgan Lekstrom said in a release on Thursday. “It clearly denotes the U.S. government’s specific interest in Botswana, recognizing both its rich mineral endowment and the scale of our high-grade projects.”

The loan, if it proceeds, would have a maximum 15-year repayment tenor to support the company’s project developments.

“Given the quality and size of our resources and the pace of current activity, we anticipate our aggressive growth trajectory to align with our shared objective of delivering new, sustainable sources of critical metals for the U.S. and its allies contributing to the future of the global critical metals supply chain,” Lekstrom said

EXIM has also advised that procurement of U.S. goods and services for the Selebi and Selkirk mines may be eligible for special consideration under the provisions of Section 402 of EXIM’s 2019 reauthorization (P.L. 116-94), part of the China and Transformational Exports Program.

Nasdaq listing

The letter came a day after NexMetals began trading on the Nasdaq, opening at $12 (C$16.50) a share with a market capitalization of nearly $260 million.

The company first announced its plans to list on the Nasdaq in early May and later completed a 1:20 share consolidation in preparation for the up-listing. Last month, it changed its name from Premium Resources and trading symbol to NEXM.

The successful up-listing to Nasdaq is a transformative milestone in our growth strategy,” Lekstrom said in a release Wednesday. “This listing reflects our continued disciplined execution, and our confidence in our renewed strategy to accelerate long-term value for our investors while strengthening our global presence and platform for future strategic partnerships.”

The listing follows a $36-million investment into Premium six months ago by investors led by mining entrepreneur Frank Giustra and his Fiore Group. 

Shares had dropped to $7.24 apiece on Thursday at mid-day, for a market capitalization of about C$222 million.

Redeveloping mines

NexMetals’ main assets are two past-producing nickel-copper-cobalt mines in Botswana. The company has been working on the projects since late 2019, with a view to redeveloping them using modern mining methods.

Selebi North hosts 3 million indicated tonnes grading 0.9% copper and 0.98% nickel for 27,000 tonnes contained copper and 29,000 tonnes nickel, according to an initial resource released almost one year ago. Inferred resources measure 5.83 million tonnes grading 0.90% copper and 1.07% nickel for 52,000 tonnes contained copper and 62,000 tonnes nickel. 

Selebi North is part of the wider Selebi mines project, which also consists of the Selebi Main deposit. It hosts 18.9 million inferred tonnes grading 1.69% copper and 0.88% nickel for 319,000 tonnes contained copper and 165,00 tonnes of nickel. 

The Selebi Main mine started production in 1980, and like Selebi North was suspended in 2016 due to a failure in the processing facility. Selebi North is about 410 km north of the nation’s capital, Gaborone. 

The Selkirk project comprises a mining licence covering 14.6 sq. km, plus four prospecting licences covering 126.7 sq. km. The deposit has an estimated inferred resource of 44.2 million tonnes grading 0.24% nickel, 0.30% copper, 0.55 gram palladium and 0.12 gram platinum.