The company will continue to explore its properties located in the Sudbury basin as well as northern and eastern Ontario.
"Regrettably, the prevailing nickel prices are below Lockerby's cash costs per pound of payable nickel even though the company has worked diligently throughout 2008 to reduce costs," said William Anderson, president and CEO of First Nickel.
"We believe this is the best option to conserve cash and position the operation for future success while maintaining the long-term benefit to the community and our shareholders."
The company says affected employees will be provided with transition support.
"We intend to work with those who are displaced to help them relocate elsewhere in the industry," said Gerry Bilodeau, VP Operations.
ALB Price at posting:
42.0¢ Sentiment: LT Buy Disclosure: Held
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