twiggys bullmarket, page-28

Twiggy's Poseidon up on Eagle Eye JV

27th June 2008, 15:00 WST




Shares in Andrew Forrest's Poseidon Nickel have closed up almost 30 per cent after the firm announced its plan to enter a joint venture deal with West Perth-based Eagle Eye Metals.

The deal will cover Eagle Eye's Waite Kauri nickel and cobalt project, located 43km north-east of Leonora and about 50km from Poseidon's Windarra Nickel Project, and on which Eagle Eye has today completed 237 exploration drill holes.

Poseidon will take an 80 per cent stake in, and be manager of the project under the joint venture, bearing the full cost of exploration expenses up to $500,000.

Eagle Eye will refund exploration costs relative to its 20 per cent stake in the venture over $500,000 only when ore resources are established and a decision to mine is taken.

Poseidon will also pay a two per cent net smelter royalty for all nickel and cobalt metals produced from its 80 per cent share, as well as having a right to purchase Eagle Eye's 20 per cent of total production at the prevailing market rate.

Poseidon shares closed up 27¢ to $1.18, while Eagle Eye shares closed down 25 per cent to 9¢.

ANDREW HOBBS