5th Jun 2007 10:19
Albidon Limited05 June 2007 Level 1 62 Colin St West Perth 6005 Western AustraliaALBIDON LTD ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD JINCHUAN GROUP TO UNDERTAKE A FEASIBILITY STUDY FOR CONSTRUCTION OF A NICKELSMELTER IN ZAMBIA HIGHLIGHTS • Jinchuan Group has advised it is conducting a feasibility study for the construction of a nickel smelter to treat concentrates from Albidon's Munali Nickel Project in Zambia. • The smelter feasibility study will include a review of other possible industrial developments and is scheduled for completion in the second half of 2007. • Albidon is working closely with Jinchuan and the Government of Zambia to evaluate the possible smelter development which, if it proceeds, would significantly benefit all stakeholders in the Munali Nickel Project. Munali Nickel Project The Munali Project (100% Albidon) is located approximately 60 kilometres southof Zambia's capital city Lusaka. The project area comprises the EnterpriseDeposit and a number of other nickel prospects in the Munali Intrusion.Construction of the Enterprise Mine is under way. An offtake agreement was signed in December 2006 whereby Jinchuan Group willpurchase nickel concentrates from Albidon over the life of the Munali project.Offtake financing arrangements were concluded in April 2007, with Jinchuanproviding a subordinated debt facility of US$20 million in addition to a US$5million equity investment in Albidon. Smelter Feasibility Study Following meetings held between 30 May and 2 June 2007 in Jinchang, China, byAlbidon, Jinchuan and the Government of the Republic of Zambia, the emergingZambia nickel industry may attract additional investment from the Jinchuan GroupLtd of China. Jinchuan has commenced a feasibility study to assess the possibility ofconstructing a nickel smelter in Zambia to treat nickel concentrates fromAlbidon's Munali Project that commences production in mid-2008. Jinchuan Group Ltd is the largest nickel producer in China and one of thelargest producers in the world. The study will examine a number of alternatives with regard to location and willalso examine the possibility of developing related industrial infrastructure. Itis anticipated that the feasibility study will be completed in the second halfof 2007. Albidon has made every effort to facilitate the commencement of the smelterstudy and will continue to work closely with Jinchuan and the Government ofZambia to expedite the assessment of the project. If the study is positive, the construction of a nickel smelter in Zambia wouldbring substantial benefits to Albidon, to Jinchuan and to the local and nationaleconomy. If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 94802500. Additional information may also be viewed on Albidon's website atwww.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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