Friday, May 29, 2009

Heron To Develop Nickel-Cobalt Project With Chinese Partner

Heron Resources and China's Ningbo Shanshan will jointly develop Heron's Yerilla nickel-cobalt project.

Shanshan will undertake a feasibility study into treating ore from Yerilla using Shanshan technology, to produce a nickel and cobalt concentrate for further processing in China.

As part of the transaction Shanshan would also become a significant shareholder in Heron holding up to 14.99 per cent of the company.

A bulk sample of Yerilla ore has been shipped to test compatibility of the ore with Shanshan’s processing technology.

In case of a positive feasibility outcome, Shanshan may earn a 70 per cent interest in the Yerilla project, in Western Australia, by funding construction and commissioning.

The agreement is subject to Chinese and Australian regulatory approvals, Heron said in a statement today.

Source: The Australian/Dow Jones

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