Albidon in talks with potential suitor Stuart McKinnon, The West Australian December 22, 2011, 8:37 am
Troubled nickel miner Albidon says it is in discussions with a potential suitor over a possible takeover of the company.
Albidon said it had opened its books exclusively to the undisclosed bidder to complete due diligence.
The discussions follow a strategic review of the company started in October, which concluded Albidon needed to attract a new strategic investor.
The company was forced to suspend operations at its flagship Munali nickel mine in Zambia last month after production problems and lower nickel prices prompted a cashflow shortage.
The company said it would make further announcements on the potential transaction when appropriate.
It is the second time Albidon has been forced to put up the white flag.
The company called in administrators in April 2009 after a collapse in nickel prices following the global financial crisis.
China's Jinchuan Group came to its rescue at the time, injecting $34.8 million and taking a 49.9 per cent stake in the company. Albidon shares last changed hands for 7.5 cents.
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