PERTH – ASX- and Aim-listed European Nickel would seek to raise $60-million through a strategic partnership with Constantia Resources, an affiliate of Canada’s Hunter Dickinson group.
European Nickel, which is developing the Çalda? nickel project in Turkey, said it agreed a private share placement to Constantia, through two tranches.
The first tranche would see the placement of 10,5-million shares, to raise $5-million, followed by a second tranche of more than 83,3-million shares to raise $55-million.
The second offering was conditional upon shareholder approval and the successful completing of the Çalda? project financing facility, which was currently under way.
In addition, upon finalisation of the Çalda? project finance facility but prior to the completion of the second offering, European Nickel would seek to raise up to a further $20-million through a private placement to existing institutional shareholders.
On the closing of the first offering, Constantia would have the right to nominate one director to the European Nickel board. Following the closing of the second offering, and subject to Constantia holding 10% or more of the company, Constantia would have the right to nominate additional directors, on a pro-rate basis to its shareholding.
“We are very pleased to initiate a strategic partnership with European Nickel to advance the development of the Çalda? project,” said Hunter Dickinson chairperson Robert Dickinson.
“We have confidence in the management and in the technical expertise that European Nickel has developed to lead the project, and believe that Çalda? will become a significant, near-term nickel producer.”
The Çalda? project is European Nickel’s flagship asset, and was said to be one of the largest foreign direct investments in Turkey’s mining industry.
With proven Joint Ore Reserves Committee reserves of 33,2-million tons at 1,13% nickel, the mine is targeting 20 000 t/y of nickel production over a 14 year life-of-mine.
An initial project capital expenditure of $277-million would be required to bring the project to production.
Source: miningweekly