this is encouraging

Some encouraging news from Proactive Investor...

Giant US investment bank Goldman Sachs today revealed it has bought a 6 per cent stake in ENK (LON:ENK, ASX:ENK)), the Philippines-focused nickel group.

The bank bought more than 16 million shares after the nickel group published interim results last week and now holds a stake of 6.19 per cent described as beneficial.

ENK is developing the Acoje nickel mine in the Philippines. Once up and running it is expected to produce 24,500 tonnes of nickel and 930 tonnes of cobalt a year. At the moment the Acoje has a 10 year mine life.

ENK is also in a strong cash position following the sale of the Caldag prospect in Turkey earlier in the year.

Last month, managing director Rob Gregory said "The receipt of the additional US$34 million [from the Caldag sale] means that ENK now has over US$40 million cash on hand”.

“The company is fully funded for its ongoing BFS activities at its Acoje project in the Philippines and will have a significantly strengthened balance sheet ahead of negotiations with project finance providers. This will enable the company to remain on track to commence production at Acoje in 2013," he added.

Shares in ENK ticked up slightly to 12.25p on today’s news, which values the AIM-listed group at £32 million.