Monday October 20, 2014, 8:01am PDT
Talisman Mining (ASX:TLM) has signed an agreement to purchase Glencore's (LSE:GLEN) Sinclair nickel mine for $10 million.
According to Mining Weekly:
"Under the terms of the agreement, Talisman would make a cash payment of A$8-million to Xstrata Nickel at the completion of the transaction, as well as a A$2-million deferred payment, which would be triggered by production being restarted within six years of the transaction being completed.
TheSinclairproject, which was placed on care and maintenance in August 2013, historically produced about 38 500 t of nickel and included infrastructure, a 300 000 t/y plant, a 200-room accommodation village, an existing opencut and underground mine, and a 2 km sealed airstrip.
Gary Lethridge, managing director of Talisman, said:
"Over the course of 2014, we have identified and conducted due diligence on a large number of resource assets. The Sinclairproject represents by far the best opportunity that we have seen. It offers a rare combination of exceptional exploration upside, an existing opencut and underground mine, plus well-maintained and near-new on-site processing plant and concentrator with extensive surface infrastructure, which removes a critical hurdle in terms of potentially advancing rapidly toward production in the future.