Poseidon announces major developments

Press, Volume CXII, Issue 33061, 31 October 1972, Page 21

Poseidon announces major developments

(N.Z. Press Association—Copyright f

ADELAIDE, October 30.

Major developments enabling the full development of the Windarra nickel deposits by Poseidon, Ltd, were announced at the annual meeting by the chairman (Professor E. A. Rudd).

Poseidon is disbanding its I Joint-venture agreement with: the United States consortium,' Union-Hanna-Homestake and I it will acquire the group’s! South Windarra orebody i without any cash outlay. It! thus will own it and the) Mount Windarra orebody out-I right.

The Government - backed Australian Industry Development Corporation, has agreed to provide financial support to enable the project to proceed.

“The acquisition of 100 per cent control of the Mount Windarra project can be achieved without the necessity for Poseidon to pay out cash by the issue to U.-H.-H. of a maximum of 280,000 fully paid shares. "This issue may need shareholders’ consent and accordingly a special meeting may have to be convened,” Professor Rudd said. Professor Rudd said that shareholders would be aware of the joint-venture with the Union-Hanna-Homestake consortium and since that came

into operation it had provided the funds for the development and testing of the Mount Windarra and South Windarra nickel deposits. Since the signing of the agreement the consortium had contributed $4.4m to the joint venture.

This had permitted the continued development of the two orebodies without cost to Poseidon while sales contracts were being negotiated and discussions held with the 'Government. The consortium had also guaranteed a loan of s3m to Poseidon.

In August the Poseidon board, after careful consideration of the Poseidon-U.-H.-H. revised feasibility studies, the reduced capital on infrastructure negotiated with the Government, sales contracts offered and discussion with financial organisations, made

the decision that it wished to proceed with the full-scale development of the project with an initial planned production of 700,000 tons of ore a year.

Western Mining Corporation, Ltd, and Sherritt Gordon Mines, Ltd, Canada, have entered into an agreement for the purchase and treatment of the nickel concentrates to be produced by Poseidon at Windarra.

Western Mining and Sherritt will each purchase onehalf of Poseidon’s expected annual production for five years from the start of production, which is expected to be about August, 1974.