2nd Mar 2006 09:54
European Nickel PLC02 March 2006 news release For immediate release: 2 March 2006 European Nickel PLC European Nickel PLC and BHP Billiton to negotiate new terms LONDON: 2 March 2006 - European Nickel PLC ("ENickel" or the "Company") and BHPBilliton plc have agreed to extend the First Property Option exercise perioduntil 21st March 2006. The companies have agreed this extension to allow timeto complete discussions on their future collaboration on both the Caldag projectand the jointly developed heap leach process. Under the terms of the Option and Framework Deed between the companies signed inJune 2004, BHP Billiton has certain rights (the First Property Option) to take adirect interest in the Caldag project. The parties have now mutually decided toreview certain aspects of the agreement. Completion of this review will allow the project financing to move forward andto cement the future working arrangements between ENickel and BHP Billiton inthe development of heap leaching nickel laterites. Simon Purkiss, the Managing Director of ENickel, said today: "We have enjoyed very good relations with BHP Billiton over the last few yearswhile we have brought Caldag to the position it is today, on the cusp of beingdeveloped as a full scale operation. I am pleased with our recent discussionswith BHP Billiton and I look forward to concluding these discussions shortly andfinalising the financing of the Caldag project". ENickel announced in November 2005 the completion of a positive bankablefeasibility study on the development of the Caldag nickel project in westernTurkey. Construction of the project is planned to commence in mid 2006, withfirst production in the third quarter of 2007. The mine will produce a mixedhydroxide product containing some 21,400 tonnes of nickel and 1,000 tonnes ofcobalt a year. Ends Contacts: Simon Purkiss, MD 020 7495 5055 / 07798 836 225European Nickel Keith Irons 020 7367 8873 / 07885 356 639Simon Rothschild 020 7367 8871 / 07703 167 065Bankside Consultants This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BHP Group