Caeneus' Option on Poseidon Nickel's Silver Swan Lapses

Poseidon Nickel Ltd. (ASX:POS) announced that Caeneus Minerals Ltd.’s (ASX:CAD) option on the Silver Swan project has lapsed. Caeneus is still responsible for a $950,000 payment to Poseidon in either cash or shares.
As quoted in the press release:

Poseidon is developing an alternate strategy for Silver Swan to support its own activities. Poseidon believes that Silver Swan may be able to produce sufficient cash flow, even at current nickel prices, to at least fund the care and maintenance costs of all of its operations through this period of very weak commodity prices.
Silver Swan has historically been the highest grade nickel mine in Australia with annual production grades across the life of the mine typically in the range of 8% to 12% nickel. Recently, Caeneus minerals announced a non-JORC Indicated and Inferred estimate of contained nickel between a depth of 1,300m and 1,600m underground. It was reported that Norilsk estimated these numbers in 2008 and Golder Associates reviewed them in 2011 (refer to the relevant ASX announcement on the Caeneus website dated 9th July 2015 but unable to be reprinted here due to requirements under the JORC code until the resource has been re-estimated to JORC 2012).

Click here to read the full Poseidon Nickel Ltd. (ASX:POS) press release.