AS part of its new strategy for the Mindoro Nickel Project, Intex Resources has agreed to sell 8.9 million treasury shares representing 9.71% of its outstanding shares for proceeds of NOK20.025 million (about US$3.334 million). The buyer is Double Concept Investments, a Hong Kong-based company controlled by Alfonso Cusi and Wilfredo Fernandez, who are members of the Board of Directors in Intex Resources Philippines.

Intex has also signed a comprehensive co-operation agreement with Alfonso Cusi and Wilfredo Fernandez, based on a no cure no pay bonus scheme structure. The agreement carries certain milestones related to the future development of the Mindoro project, including work programs related to community relations/development, communications, permits and stakeholder engagement. Any payments will be purely success based.

“The share transaction will contribute to align our interests, and we now have an even stronger common interest to bring the Mindoro Nickel project forward” says Intex chairman Christian Holst.

The current strength in the nickel market is also a boost for Intex. By holding the Mindoro project, Intex is part of the nickel metal market spectrum. Only this year the nickel price on the LME exchange has increased more than 40%, mainly due to the Indonesian export ban on unprocessed ore which has changed the market dramatically.

The company views the outlook for the nickel market as strong due to an expected change in supply and demand, and the fact that fewer projects now are being developed compared to the start of the last nickel cycle.

“The nickel market is changing, and we believe this will be positive to Intex going forward. The realization of the project is not dependent on the nickel market, but we believe that the incentive for the industry to make new investments increases when the outlook for the market prospers”, says Intex CEO Henno Grenness.

Meanwhile, implemented measures to increase the company’s financial flexibility have proven to be sustainable. With a loss of US$1.2 million for the first quarter of 2014 compared to a loss of US$1.9 million for the corresponding quarter of 2013, Intex has managed to reach the 30% targeted reduction of the cost base and the company is comfortable that the cost reduction measures are sustainable.