Shares in Andrew-Forrest-led Poseidon Nickel jumped as much as 30 per cent today on news the company had entered into exclusive talks to acquire a "significant" nickel project in Western Australia.
Poseidon's share price climbed to an intraday high of 32 cents before closing at 28.5c, up 14 per cent from yesteday's close.
"The principal terms of an acquisition have been tabled by the parties but negotiations are ongoing and incomplete," the company said.
"The potential acquisition will be complementary to Poseidon's cornerstone asset, namely the Windarra nickel project in the north east Goldfields."
The company said it would provide an update "in the next few weeks".
The Windarra nickel project is near the Murrin Murrin mine, which is 60 per cent owned by Minara Resources, formerly known as Anaconda Nickel under Mr Forrest's former leadership.
Minara deferred a $300 million expansion at the mine after letting 200 workers go in July.
Several nickel mines in WA have been shut down or placed on care and maintenance in recent weeks due to the low price for the metal, including operations run by Mincor Resources, Ukrainian-owned Consolidated Minerals and Russian-owned Norilsk Nickel.
