Western Metals to acquire Canadian nickel project from BHP December 06, 2007 11:36am
WESTERN Metals has entered into an agreement with BHP Billiton for an option to acquire the Snowbird nickel and base metals project in Canada.
Under the deal, Western Metals must pay $US250,000 after a due diligence period, which is expected to end in June, drill one hole to test a specific anomaly, and pay a further $US1.25 million by July 31.
Western Metals managing director George Bauk said the acquisition built on the company's North American presence and base metals portfolio, representing its first significant nickel project.
"This acquisition continues our strategy to pursue high value commodities in the most prospective terrains," Mr Bauk said.
Western Metals recently completed a $32 million capital raising, with $31.5 million currently available for exploration and future acquisitions.
The company believes the project contains drill-ready targets, following various exploration programs conducted in the area by Phelps Dodge from the late 1950s through to 2000, the results of which were reviewed by BHP Billiton in 2005.
Shares in Western Metals were one cent, or 7.14 per cent, higher to 15 cents at 1121 AEDT.
Ends.
Cheers, Pie :-)
WMT Price at posting:
0.0¢ Sentiment: None Disclosure: Held
