BHP extends Panoramic offtake contract

BHP Billiton Nickel West has elected to extend its offtake contract with nickel miner Panoramic Resources for a further nine years.

The announcement is below:

Panoramic Resources Limited (ASX Code: PAN) is pleased to announce that under the terms of the 2004 Ore Tolling and Concentrate Purchase Agreement ("OTCPA") between BHP Billiton Nickel West and the Lanfranchi Joint Venture parties (Cherish Metals and Donegal Lanfranchi, both wholly owned subsidiaries of Panoramic), BHP Billiton Nickel West has formally given notice to:

- increase the maximum limit under the OTCPA for ore deliveries from the Lanfranchi Project from 350,000 tonnes per annum to 435,000 tonnes per annum for FY 2009/10 only; and

- exercise its option to extend the OTCPA a further nine years from the current expiry date of 27 February 2010 to a new expiry date of 27 February 2019.

Panoramic is delighted that BHP Billiton Nickel West will accept 435,000 tonnes of ore from Lanfranchi in FY2009/10 and elected to extend the OTCPA a further nine years out to February 2019. Panoramic has confidence in the Lanfranchi Project's ability to supply significant quantities of ore to the Kambalda concentrator in the long term.