Junior explorer Poseidon Nickel has announced that it has acquired Black Swan nickel project from Russian mining giant Norilsk for an undisclosed sum.
The acquisition of the project includes the Black Swan open pit mine containing 185,000 tonnes nickel metal, as well as the Black Swan nickel sulphide processing plant, which is capable of processing ores from Windarra in addition to the large remaining nickel inventory on site.
According to the article on the Sydney Morning Herald, Poseidon has been looking to restart its Mt Windarra nickel mine in the West Australian goldfields in the face of poor nickel prices and tight debt markets.
“Poseidon will have the option to either recommission the plant in its current location to take ore shipped from Windarra, or the plant can be removed and relocated at Windarra creating a considerable cost saving,” Poseidon said in a statement to the ASX on Monday.
“The acquisition of Black Swan represents a strong opportunity in-line with our strategy and complements our objective of quickly getting the Mt Windarra project back into production at a much lower capital cost than previously announced and more than doubles our nickel resource base. We anticipate making further announcements which will complement this acquisition in the next few weeks,” said David Singleton, Poseidon’s Managing Director & CEO.
The company said it will not need to raise additional money for the acquisition which it can fund from current resources. Poseidon has paid a 10% deposit to Norilsk and the remainder will be due when the conditions precedent are satisfied. The parties anticipate completion to occur within the next 6 months.