Poseidon Completes Acquisition of Lake Johnston Nickel Project

Poseidon Nickel Ltd. (ASX:POS) announced that it has completed its acquisition of the Lake Johnston nickel project. The company plans to bring that project, as well as the Mt. Windarra project, back into production within “six months of final financing and successful completion of the Lake Johnston DFS.”

Black Swan will go into production after that.

Transaction highlights include:

• Poseidon has increased its nickel portfolio from one to three projects in six months with acquisition of Black Swan and Lake Johnston 
• Poseidon’s resource base more than doubled to circa 380,000 tonnes nickel through recent acquisitions. Potential production output capacity also doubled 
• Restart costs of $11M* estimated for Mt Windarra and $12.8M* for Black Swan, with Lake Johnston costs expected to be similar. Represents an A$240M reduction from previous production start-up estimates. The Company has recently raised $30M 
• Lake Johnston DFS underway and due for completion in coming month 
• The return to production of all three projects would give Poseidon the second largest sulphide nickel processing capacity in Australia.

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