UPDATE 1-Japan's Itochu to invest in Pure Nickel's MAN property
Wed Nov 5, 2008 11:24am EST
reuters.com
(Recasts, adds details)
Nov 5 (Reuters) - Pure Nickel Inc (NIC.TO: Quote, Profile, Research, Stock Buzz) on Wednesday said Japanese trading house Itochu Corp (8001.T: Quote, Profile, Research, Stock Buzz) will invest up to $40 million for further exploration and development of its MAN Alaska property and may acquire up to a 75 percent stake in the mine. Itochu can earn a 60 percent interest in the MAN property by spending a total of $30 million in exploration expenditures over the first six years of the option period.
Itochu, which has made diverse investments globally in ethanol, food grains and mining, has the option to take an additional 15 percent stake in the property by spending another $10 million of exploration expenditures during the seventh year.
Pure Nickel said Itochu will also reimburse costs incurred this year at the property and will fund exploration activity to a combined maximum of $6.5 million for 2008 and 2009. Shares of Pure Nickel, which have fallen more than 83 percent so far this year, were up C$0.05 at C$0.12 in late morning trade on the Toronto Stock Exchange. (Reporting by Chakradhar Adusumilli in Bangalore; Editing by Vikram S Subhedar) |
