Poseidon Nickel once again on the way back: Micheal Bennet From:...

Poseidon Nickel once again on the way back:

Micheal Bennet From: The Australian April 22, 2010 12:00AM

ANDREW Forrest's other mining baby, Poseidon Nickel, is today expected to announce the restart of work at its Mt Windarra underground mine in WA that was put on hold in the depths of the global financial crisis.

Poseidon put the brakes on the project at the end of October 2008, 20 per cent into its rehabilitation and just six months after beginning in March. Way back in 1969, Poseidon was at the centre of another astonishing boom-and-bust story as its shares rose from 80c to $280 thanks to its discovery of WA's first nickel at Windarra.

Today's Poseidon (different company, same name) rebought the assets from BHP a couple of years back and needs a further $8 million to complete the mine's refurbishment. To help matters, Poseidon is believed to be close to either drawing down on $US35m ($38m) from Twiggy's good mates at New York fund manager Harbinger Capital or announcing an alternate funding deal.

Thanks to Twiggy's "close relationship" with Harbinger, it offered $US50m back in June 2008 via an issue of convertible notes that could lift its stake in Poseidon to 25 per cent from about 16 per cent.

Poseidon has already drawn down $US15m but says it is pondering funding from a number of sources. However, Harbinger's involvement wouldn't surprise, given that it has a stake of almost 6 per cent in Forrest's Fortescue Metals Group. Forrest owns about 3 per cent of Poseidon and is chairman.

http://www.theaustralian.com.au/business/city-beat/poseidon-nickel-once-again-on-the-way-back/story-e6frg9no-1225856622756