Nickelore Limited Raises Capital and Sells Nickel Rights To Minara Resources
Emerging nickel producer Nickelore Ltd is pleased to announce that it has raised a total of A$1.02 million from a sale of the nickel rights in the Bardoc Nickel Project (BNP) to Minara Resources Limited (ASX: MRE.AX), and a small capital raising book build. The purchase agreement signed today is expected to complete on 4 June 2008 subject to the parties’ satisfaction of usual and appropriate conditions precedent.
Under the existing farm-in arrangement, Minara has a right to earn 70% of the BNP by expenditure of A$3.1 million. Nickelore currently manages the exploration work for the BNP, but has opted to grant to Minara all the nickel rights in the BNP to focus its resources on the Canegrass Nickel Cobalt Project. Minara has agreed to pay a total of A$0.725 million for the remaining nickel rights in the BNP. Nickelore will retain all the non-nickel rights to the extensive Bardoc tenements, including the Bardoc Gold Project.
Managing Director Iggy Tan said that the divestment would allow Nickelore to focus more resources on its Canegrass Nickel Cobalt Project. “In addition, Nickelore retains all the non-nickel rights to approximately 100 square kilometres of Bardoc tenements, including the Bardoc Gold Project, without any holding costs or minimum expenditure requirements”.
Nickelore also announced a completion of a small capital book build from shareholders and directors of the company raising an additional A$0.29 million at an average price of 7c per share. Placement of shares to directors will be subject to shareholder approval at the next appropriate general meeting. Managing Director Iggy Tan said that the company will continue to raise funds for the Canegrass Nickel Cobalt Project through various routes including the recently announced share purchase plan, private placements with potential cornerstone investors and divestment of non-core assets.
About Nickelore Limited:
Nickelore Limited is a Perth-based nickel company listed on Australian Securities Exchange (ASX Code: NIO). The Company’s primary focus is on exploring, realising and expanding the economic potential of the Canegrass, Mount Pleasant, Lake Marmion, Goongarrie East and Bardoc projects in Western Australia’s Eastern Goldfields. Nickelore acquired Mineral Rights to mine and extract 140,000 tonnes of nickel metal in laterite nickel products from the Canegrass Nickel Cobalt Project. The company has commenced a scoping study into a Heap Leach nickel extraction plant. Members of the Nickelore Board and management team have proven records in mineral exploration, project development and project financing.
Iggy Tan Managing Director
TEL: +61 8 9481 2433
John Nayton External Affairs
TEL: 0422 414 983
Source: Nickelore Limited