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Additional Information
Market: AIM
Sector: General Mining
EPIC: ENK
Latest Price: 11.38  (-2.15% Descending)
52-week High: 20.00
52-week Low: 11.00
Market Cap: 29.81M
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ENK
www.enk.co.uk

ENK (AIM/PLUS/ASX: ENK) is an emerging mid-tier nickel laterite producer focused on growth with assets in Turkey, the Philippines and Albania.

ENK has developed an innovative, low cost, environmentally sensitive heap leach technology, which offers a competitive edge over conventional nickel laterite processing.

Full ENK profile here
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European Nickel updates on recent progress at Çaldağ and Acoje

30th Jul 2010, 3:10 pm

European Nickel (LON:ENK) reported on the progress made during the quarter ending June30 2010, which saw the completion of the merger with Rusina Mining NL.

In May 2010, the group announced that it had negotiated an indicative term sheet and signed a joint mandate letter with Société Générale and UniCredit Bank as the Mandated Lead Arrangers (MLAs) for funding of the Çaldağ nickel laterite project in Turkey. 

The debt requirement is for a US$300 million term loan facility and US$25 million overrun facility, of which the MLA's intend to commit US$50 million each.

European Nickel has continued to advance the financing arrangements and expects the MLAs to be ready to approach the debt market with a package of documentation including the facility agreement and major contracts during September 2010.

Since the quarter-end European Nickel announced bringing on board a heavyweight investor that will take a US$60 million stake in the miner. Canada’s Hunter Dickinson (HDI) will buy stock in two tranches. It will acquire US$5 million-worth shares in a private placement immediately, followed by the major investment in the final quarter of 2010.

At Çaldağ the reappointment of the engineering procurement (EP) contractor, Aker Solutions, and the construction management (CM) contractor, Merit Engineers, is underway. The groups also undertook the previous phase of development at Çaldağ in 2006/07.

Negotiations for all principal construction contracts are also underway and are expected to be finalised during the third quarter 2010 as a pre-requisite for the project financing. The forestry permits at the project are expected them to be re-issued during the coming quarter.

At the Acoje heap leach trial and test centre in the Philippines, the trial start was deferred until the merger between Rusina and European Nickel was completed. At the start of the next dry season, the precise commencement date will be assessed in light of the construction timetable for Çaldağ and the company's personnel resources.

Work in the Acoje Test Centre (ATC) continues apace.  The test-work program is progressing in line with expectation.  The ATC will provide all the metallurgical data required for the definitive feasibility study (DFS), whilst the heap leach trial will demonstrate the operability of the process under Philippines equatorial conditions.

The company is conducting a thorough review of all of its non-core exploration assets and tenements. Options include sale or farm out, as well as the transfer of Philippine assets to the Philippine partner Montemina.

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