NICO will apply for a listing on the ASX alongside the transaction.

According to Metals X executive director Brett Smith, the sale will direct the company’s focus on developing its tin portfolio.

“When combined with the company’s recent sale of its copper assets, the spin out of the nickel assets aligns with the company’s strategy of focussing on the development of its tin portfolio,” he said.

“Metals X’s 50 per cent joint venture at the Renison Tin Operation in Tasmania remains the company’s primary focus, and it looks forward to working with shareholders as it continues to progress the spin out of the nickel assets and to enhance its position as Australia’s largest tin producer.”

In February, Metals X agreed to sell its copper portfolio to Cyprium Metals for $60 million.

This included the Nifty copper operation in Western Australia.

Metals X’s nickel portfolio is owned by subsidiary Metals Exploration, with all shares in the subsidiary to be sold to NICO.

Metals X shareholders will receive NICO shares through the transaction.

“The sale and spin out of the Nickel Assets, allows Metals X shareholders to have a direct holding in a listed vehicle focussed on the nickel assets whilst also allowing Metals X to retain a substantial investment in the nickel assets in a newly listed vehicle,” Smith said.

Metals X’s nickel portfolio was sold for $5 million in shares.

The Wingellina project is the largest undeveloped nickel-cobalt project in Australia, with a mineral resource of 2 million tonnes of nickel and 154,400 tonnes of cobalt.