Vale (VALE) said Thursday it agreed to sell most of its stake in the Thompson Nickel Belt venture in Manitoba to Exiro Minerals, Orion Resources Partners, and Canada Growth Fund as part of a strategic review of its base metals business.
Vale (VALE) said its Vale Base Metals subsidiary will retain an 18.9% minority stake as part of a new four-party consortium for the Thompson venture, with Exiro, Orion, and Canada Growth Fund collectively holding 81.1%.
The consortium partners agreed to invest as much as $200M at Thompson, while Vale Base Metals (VALE) signed an offtake agreement for concentrate produced at the Thompson mill, maintaining its status as Canada’s largest nickel supplier.
The group did not disclose the terms of the transaction, which is expected to close by year-end.