22nd Sep 2008 07:00
|
ALBIDON LIMITED |
Level 1 |
|
62 Colin St |
|
|
West Perth 6005 Western Australia ARBN 107 288 755 Tel:+6189211 4600 Fax: +6189211 4699 Email:[email protected] ASX Code: ALB AIM Code: ALD |
|
22 September 2008
HEDGE BOOK CLOSEOUT AND FIRST DELIVERY OF NICKEL CONCENTRATE
The Company is pleased to advise that it has decided to close out its hedge book and reduce its financing obligations. In addition, the first delivery of nickel concentrate from the Munali Nickel Project has been made to Jinchuan Group Limited.
The Company closed out its hedge book of 11,294 tonnes of nickel generating net proceeds of approximately US$50 million. The proceeds will be utilised to decrease its senior debt.
Delivery of the first nickel concentrate is another milestone in the development of the Munali Nickel Project. Commissioning of the newly constructed concentrator continues with full ramp up expected to be completed by the end of 2008.
If you have any queries, please contact the Managing Director, Dale Rogers on +61 8 9211 4600.
Additional information may also be viewed on Albidon's website at www.albidon.com.
Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen +61 8 9480 2500.
About Albidon Limited.
The Company was established in April 2000 and listed on both AIM and ASX stock exchanges in March 2004. The Board and management have a diversity of skills in exploration, mining, metallurgy, concentrate marketing, logistics and project finance in Africa and elsewhere.
The Company's main focus on East Africa is based on the assessment that this region holds the potential to be one of the world's premier nickel mining districts. Albidon's development activities have been centred on the Munali Nickel Project, in Zambia, where the Company completed a positive Bankable Feasibility Study in July 2006. Exploration drilling is ongoing, with the aim of expanding the nickel resource base in the Munali district.
Munali (100% Albidon) is located approximately 60 kilometres south of Zambia's capital city Lusaka. The Munali project area comprises the Enterprise Deposit and a number of other nickel prospects in the Munali Intrusion, the most advanced of which is the Voyager prospect along strike to the north of Enterprise.Project construction is now complete, with first production of nickel concentrates achieved in mid 2008.
The other projects are at an early stage of exploration, where prospects range in degree of maturity from mineralized drill intersections to large licence holdings which cover prospective ground with identified targets that have not yet been drilled, such as the Songea nickel project in Tanzania and the Selebi-Phikwe Project in Botswana.
The Company believes the east and southern African projects have potential for discovery of substantial nickel sulphide deposits, and further that they represent a regional exploration opportunity in a relatively unexplored terrain.
Albidon's large licence holdings in southern and eastern Zambia also have potential for substantial uranium deposits, as confirmed by the recently announced positive pre-feasibility study on the Chirundu Uranium Projects.
Related Shares:
ALD.L