Continental Nickel Limited (TSX VENTURE:CNI) has announced that it has notified its joint venture partner IMX Resources Limited of Australia that it has completed total aggregate expenditures on the Nachingwea nickel sulphide project of C$15 million, and as a consequence, its interest in the project has increased by 5% to 75%.
Under the terms of the Shareholders Agreement dated February 28, 2007 CNI was to sole fund expenditures on the Nachingwea Project until the sooner of either: a) completion of a feasibility study, or b) completion of expenditures totalling C$15 million. Upon satisfying either a) or b), CNI's interest increases by 5% to hold a 75% interest in the project, and further expenditures are then to be shared by the joint venture partners pro rata to their respective interests.
Also, should CNI earn its increased interest by completing expenditures totalling C$15 million without completing a feasibility study, it then has 90 days to elect to sole fund a feasibility study which, once completed, would increase the company's interest in the project a further 5% to hold 80%.
The Company does not intend to make this election within the 90-day election period because the decision to undertake a feasibility study will be contingent on the results of a revised Mineral Resource estimate and a scoping study which are anticipated to be commissioned upon completion of the 2010 exploration program. However, the Company may at a later date propose to sole fund a feasibility study, subject to agreement with IMX, for which its interest would increase by 5% to hold an 80% interest upon completion of the study.
Craig MacDougall, President & CEO of Continental Nickel Limited, said "This is another major milestone for the Company and consolidates further its controlling interest in this exciting and fast developing nickel sulphide project. Our ongoing 2010 exploration drill program has, as reported, intersected extensions to sulphide zones which have potential to add to our current Mineral Resource inventory, and has also resulted in the discovery of a new, potentially large, nickel sulphide zone at Sleeping Giant for which additional drilling is being planned."
The information in this release was prepared under the direction of Craig MacDougall, P. Geo., President and CEO for Continental Nickel Limited. Mr. MacDougall is qualified persons as defined by National Instrument 43-101.
Source: Continental Nickel Limited