PRC: European Nickel given US$2.84 mln refund for Caldag forestry permit
European Nickel (LON:ENK, ASX:ENK) has received a US$2.84 million refund in relation to its forestry permit application for the Caldag project in Turkey.
A further US$500,000 VAT refund is also expected shortly.
The company had reached an advanced stage in the project’s development. It had project financing arranged and the only thing holding up proceedings was the re-issue of a forestry permit. The Caldag project was put on care and maintenance back in December 2010 because of delays getting the permit.
Since then it has changed its strategic emphasis to concentrate on developing the Acoje project in the Philippines.
This morning ENK also told investors that commissioning of the heap leach trial site is progressing well on the island of Luzon, Philippines. It said that the pad is being stacked with agglomerated ore and it is expecting irrigation with acid to commence shortly.
The trial pad will test rain mitigation techniques, provide pregnant leach solution (PLS) for downstream process testing and it will demonstrate the benign nature of heap leaching, ENK said.
Meanwhile the direct shipping ore (DSO) part of the project has now got underway at the site, with the DMCI Mining’s trucking operations starting today. DMCI is carrying all the financial risk, operations and marketing associated with the operation. It pays ENK a royalty fee on each shipment made.
Earlier this month ENK entered into a new mining agreement with strategic partner DMCI. The partner is trucking the ore to their port in Santa Cruz, in the northern part of Manila.
ENK also revealed that it has agreed a deal to sell exploration permits – Barlo, Pan de Azucar and Guimeras – to Arena Resources for an intial US$50,000.
A further US$550,000 payment is due once Arena lists on the Australian Securities Exchange. ENK will also receive 5 million shares in Arena.
There are more follow-on payments – two lots of US$1 million – due if Arena finds 50,000 and 100,000 tonnes of JORC resources grading more than 1 percent copper equivalent. A further US$5 million will be due if Arena completes a bankable feasibility study at each of the three projects.
