Condor Nickel drops Chinese merger

Perth-based Condor Nickel says it will not merge with Chinese company Chihong International Mining despite receiving foreign investment approval.

In a brief statement, Condor said it will "proceed under the stewardship of the current board".

In March, Condor had flagged that the merger may not go ahead by the May 31 2009 deadline.

Condor expressed reservations that Chihong may not be able to complete its due diligence on time.

Shares in Condor closed untraded at five cents today.

Condor is a spin-off from Carrick Gold and holds the latter company's nickel and base metal assets. The flagship asset is the Grey Dam project near Kalgoorlie.