European Nickel Plc has signed a $350 million debt facility with two Chinese partners to fund the Caldag mine in Turkey> The new facility, announced on Thursday, will enable the project to be funded through to production
One of the partners, Jiangxi Rare Earth and Rare Metals Tungsten Group Co Ltd (JXTC), will acquire a 20 percent stake in the Caldag project for $20 million. JXTC will also buy 50 percent of the mine's nickel production, though this off-take agreement requires approval from BHP Billiton, who currently buy all Caldag's nickel output.
European Nickel indicated that BHP will be willing to grant the release and is interested in keeping its entitlement to the remaining 50 percent of the mine's output.
Total development costs of Caldag have increased to $428 million from $300 million on higher fees and operating costs and lower nickel price forecasts.
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