23 Aug 2007

Nickel company takes 49 percent stake in mining venture in New Caledonia

11:32 am on 23 August 2007

Gladstone Pacific Nickel Limited is to take a 49-per cent stake in a mining venture on New Caledonia to secure ore supplies for its Australian plant.

The company will acquire 49-percent of the venture with Societe Miniere Georges Montagnat, or SMGM, for 5-million U.S. dollars in cash and about 12 million shares of Gladstone.

The Brisbane-based company says the joint venture will be established in New Caledonia once approvals are granted which is expected to occur by the end of the year.

Gladstone will have the right to appoint the directors of the joint venture.

It says based on an internal review, it's believed that a resource exists of a size and grade that would significantly support GPNL's Gladstone Nickel Project for a period in excess of 20 years.