Poseidon Nickel Signs Offtake Agreement for Silver Swan Project

Poseidon Nickel Ltd. (ASX:POS) announced that it’s signed a nickel offtake agreement for its Silver Swan project Tsingshan Holding Group Co. Ltd. in China. The contract covers the first two and a half years of output from the mine.
Highlights include:

• Contract is for unprocessed ore and delivers superior net financial return compared to the production of concentrate
• Offtake agreement avoids need for capital investment for the restart of the Black Swan concentrator
• Shipment of ore (rather than concentrate) is possible because of the exceptionally high grade of the Silver Swan mine grading 12.2% nickel
• Poseidon believes that Silver Swan will have one of the lowest nickel production costs in Australia

David Singleton, managing director and CEO of Poseidon, commented:

Our studies to date indicate that Silver Swan could have one of the lowest operating and start-up capital costs in Australia. This novel style of contract for export ore coupled with Tsingshan’s low cost production route is a key enabler to starting production at the mine. Whilst nickel prices remain low, we believe that when the recovery gets underway, Silver Swan can get into production very quickly. Our current business focus is ensuring that both Lake Johnston and Silver Swan are ready for production as prices improve.

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