MINING identity Andrew Forrest will assume the role of non-executive chairman in a management shake up at junior nickel play Niagara Mining, adding that he is "thrilled" to be back in the nickel business.
Andrew Forrest
At a press conference this afternoon, Niagara chairman Doug Daws said he was "absolutely ecstatic" with the reorganisation of management, constantly commenting that the new structure will make Niagara a major nickel player in Australia.
Forrest, meanwhile, said Niagara's asset – the historic Mount Windarra project in Western Australia – and the "genuineness" of people were the key attractions to the company.
"One day when the pages of history are written about Western Australia, Andrew Forrest's name will be in bold print. He will be remembered as one of the great developers of the mining industry of Western Australia," Daws said.
"Andrew Forrest will lead this company to heights which were only previously imagined."
"It is an exciting day for nickel mining in Australia and a very significant day in the development for Niagara Mining as a nickel mining, industrial, major company for Australia."
The new team will see Richard Monti, who had previously worked with Forrest at Anaconda Nickel, assume the role of non-executive director. Former company secretary at Queensland Alumina and executive general manager of strategy and development for Alinta, Chris Indermaur, will also take the role of non-executive director, which is subject to shareholder approval.
Forrest's position is also subject to shareholder approval.
Additionally, Niagara's capital structure will be consolidating on a 1:2 basis resulting in a decrease from 334 million shares on issue to 167 million.
Post-consolidation, Forrest and his associates will take a placement of 5.5 million shares at 40c each to raise $2.2 million. They will also be issued 117.5 million 40c options that become exercisable as various share price targets are achieved.
Shares in Niagara were trading at 24.5c apiece before a trading halt was called on Monday.
The $2.2 million placement will see Forrest hold about 35% of Niagara, inclusive of ordinary shares and options.
According to the company, the restructure of management and capital marks a new leaf for Niagara and its Mount Windarra mining leases, acquired from WMC Resources in 2005. The discovery of nickel at Windarra by Poseidon sparked the nickel boom in the 1970s.
According to Forrest, Niagara will undertake an extensive and aggressive exploration program where three diamond drill rigs have already been made available, and an additional three can be acquired if necessary.
"There is enough material there already to commence detailed feasibility studies, to raise the requisite capital and to swing this company into production at the shortest possible order," Forrest said.
"This is a really simple project, I know it has open pit mining or it will have, I know it has underground mining typical of most major nickel operations but from that point on, simplicity rules.
"It's a sulphide nickel geological element, it's capable of concentration in the immediate sale of that form. We don't see any of the rocket science required over the road at Murrin Murrin at this project."
Niagara has an initial target of 70,000 tonnes of contained nickel at Windarra which includes the nickel sulphide zones located below old workings which has been the subject of drilling in the past year.
According to Monti – who worked as a geologist at Murrin Murrin – the current mine at the project is around 550metres deep with mineralisation extending down to 1000m. There is also 25 kilometres of strike length which he said had not yet been tested by modern exploration techniques.
Forrest said that in the short-term, Niagara will not undertake a capital raising to fund exploration programs but will look at all "financial instruments" for the medium and long-term.
NIA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
