The Andrew Forrest-led Poseidon Nickel has confirmed it is in talks with Russian miner Norilsk Nickel about the possible acquisition of the Cawse nickel operation in Western Australia.
In a brief statement today, Poseidon confirmed an article published by The Australian Financial Review today which reported that the company could acquire the operation for some $50 million.
Late last year, Poseidon announced that it was in exclusive discussions to acquire a significant nickel project and last week said the seller had extended the period of negotiation exclusivity.
Cawse was placed in care and maintenance around October last year following the gas explosion at Varanus Island, which affected the state's nickel sector which is dependent on gas supply to process the metal.
In November, Norilsk halted production at its Waterloo and Silver Swan underground mines on the back of a falling nickel price and last month closed its remaining two nickel operations in WA, Black Swan and Lake Johnston.
In October last year, Poseidon halted underground development works at its Mt Windarra nickel project in the Goldfields due to the global economic climate.
Shares in Poseidon were down 0.5 cents to 22.5c at 12:13 AEDT.
The announcement is below:
Poseidon Nickel Limited (Poseidon) notes an article in The Australian Financial Review today making reference to Poseidon possibly having an interest in acquiring the Cawse Nickel Project from Norilsk (Acquisition).
Poseidon confirms it is in confidential discussions with Norilsk regarding the Acquisition.
The negotiations are incomplete and ongoing.
Poseidon will continue to keep the market fully informed regarding the Acquisition.
