Cobalt 27 has agreed to pay an upfront deposit of US$113 million for 55% of Highlands' share of cobalt production and a 27.5% share of its nickel production from the Ramu mine in Papua New Guinea, under a life-of-mine streaming deal.
Highlands will also receive volume-based payments of $1 per pound of nickel and $4/lb of cobalt.
Highlands holds 8.56% of Ramu, with operator Metallurgical Corporation of China (MCC) holding 85% and the PNG Mineral Resources Development Company (MRDC) holding 6.44%.
The deposit received from Cobalt 27 will be used to fully repay $97 million in loans outstanding to MCC relating to Ramu.
Previously, Highlands hadn't expected to repay the loans until 2022.
The repayment will immediately increase Highlands' stake in Ra...