Ahead of its much anticipated ASX listing, WA nickel explorer Sulphide X is accelerating its deal-making activity, signing a Memorandum of Understanding (MoU) with fellow nickel play Poseidon Nickel.
The MoU will see Sulphide X and Poseidon evaluate the possibility of processing ore extracted from Sulphide X’s Mt Venn project at the Poseidon-led Black Swan processing plant, which is currently being restarted.
The Mt Venn Project, which is located within the Western Australian goldfields region, is well within trucking distance from Poseidon’s Black Swan Operations.
The MoU has the potential to establish a lower-cost path to production for Sulphide X as well as deliver additional feedstock for the plant, which had a capacity of 2.2Mtpa during previous operations.
Poseidon has also signed a similar arrangement with nearby Estrella Resources to further increase supply at its operations.
The move highlights the deal making prowess of the Sulphide X team, led by veteran mining executive Mark Gwynne.
The pre-IPO company is also believed to have recently reaped $750,000 in a successful seed funding round prior to an ASX float.
Sulphide X is supported by prominent Gold Coast-based firm Vested Equites, which is active in the junior mining space and recently amassed $5m for Queensland-focussed vanadium minnow QEM Limited.
As nickel conditions improve the sector is set to see the flurry of activity intensify, with the larger Poseidon Nickel already making headlines for a $69 million raising to develop Black Swan, that saw mining magnate Andrew Forrest’s Squadron Resources act as sole sub-underwriter.