Alliance Nickel (ASX:AXN) has received $12.7M from Stellantis as the first payment in a strategic share placement.
The payment is part of a binding offtake agreement where Alliance Nickel will supply 40% of future annual forecast NiWest nickel and cobalt sulfate production to Stellantis for an initial five-year term.
Stellantis will have an 11.5% shareholding in Alliance Nickel and will nominate one director to the board.
The second tranche of $2.3M is expected to be paid in Q2 2023, subject to approval.