Nickel Asia Corp., a listed mining firm, disclosed Tuesday it is in discussions with Sumitomo Metal Mining Co., Ltd. (SMM) for the potential sale of its entire 15.625 percent stake in Coral Bay Nickel Corp.
As part of the proposed transaction, Nickel Asia said it plans to engage a third-party firm to conduct a valuation of the Coral Bay shares, ensuring an accurate and fair assessment of their worth. The outcome of this valuation will be a key factor in finalizing the sale agreement.
Following this development, Nickel Asia has reclassified its investment in Coral Bay as available for sale, signaling a shift in its accounting approach. As a result, the company will no longer recognize any equity gains or losses from its Coral Bay investment moving forward.
This strategic move comes as Nickel Asia continues to realign its investment portfolio.
The sale of the Coral Bay stake is expected to impact Nickel Asia’s financial performance, but the full details of the transaction, including the potential financial benefits for NAC, will be determined after the valuation process is completed.
The discussions with SMM are ongoing, with no final agreement yet reached.
