Regency Mines PLC (LON:RGM) is to take over the legwork on at the Mambare cobalt/ nickel project in Papua New Guinea.
The renewal application has been recommended for approval by the Mining Advisory Council in Papua New Guinea and awaits Ministerial signature, it added.
Andrew Bell, Regency Mines’ chairman said: “The anticipated renewal of the exploration licence for two years occurs at a key point in the mineral cycle where interest in nickel and cobalt is increasing enables us to plan strategically.
WATCH: Regency Mines' Andrew Bell 'relieved' as Mambare project now in position to advance
“As noted, we have not yet received formal notice of licence renewal.”
Partner Direct Nickel's (DNiP) restructuring meanwhile has allayed concerns over how it would meet its share of the funding, he said.
A rejigging of its joint venture arrangement will see Direct Nickel’s (DNip) 50% stake moved into a special purpose vehicle.
Regency will now act as the information hub of the JV and be responsible for admin and coordination, the initiation of draft budgets and work programmes,
All decisions on budgets, personnel, programmes, strategy and finance will be taken jointly.
Regency added that there are third parties are interested in co-operating on the Mambare project.
Through the joint venture, Regency has a 50% interest in Mambare, which has a JORC compliant resource totalling 162.5 mln tonnes of 0.94% nickel and 0.09% cobalt.