04/03/2009 - 13:13

Graynic Metals enters $14m Cuba deal

04/03/2009 - 13:13

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Subiaco-based Graynic Metals will spend $US9 million ($A14 million) to earn a majority interest in several nickel projects in Cuba and Guatemala.

Graynic Metals enters $14m Cuba deal

Subiaco-based Graynic Metals will spend $US9 million ($A14 million) to earn a majority interest in several nickel projects in Cuba and Guatemala.

Graynic has entered into a farm-in agreement with private Canadian company Nichromet.

Under the deal, Graynic will spend $US3 million within three years to earn a 50 per cent interest in Nichromet's projects and can elect to spend an additional $US6 million within three years to earn a further 25 per cent interest.

Graynic said the within the six year period, a pre-feasibility study will be completed for one of the projects.

Brazil mining giant Vale has spent $US6 million on the Guatemalan projects in the past three years, and the projects are located adjacent to BHP Billiton's Mayaniquel Sechol nickel project ad HudBay Mineral's Fenix nickel project.

Graynic said Cuba has roughly one-third of the world's nickel resources and is the world's sixth largest producer.

The agreement is subject to due diligence.

Shares in Graynic were unchanged at five cents at 15:25 AEDT.

 


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