Andrew Forrest-backed junior explorer Poseidon Nickel has bought the Black Swan nickel project from Russian mining giant Norilsk for an undisclosed sum.
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Norilsk, the world’s largest nickel and palladium producer, flagged in September that it would sell its Australian assets.
Poseidon has been looking to restart its Mt Windarra nickel mine in the West Australian goldfields in the face of poor nickel prices and tight debt markets.
It said the acquisition of the Black Swan nickel sulphide plant would allow it to process ores from Windarra.
“Poseidon will have the option to either recommission the plant in its current location to take ore shipped from Windarra, or the plant can be removed and relocated at Windarra creating a considerable cost saving,” Poseidon said in a statement to the ASX on Monday.
Poseidon added it would not need to raise additional money for the deal, saying it can fund the transaction from its current resources. Citigroup is understood to be handling the sales process for Norilsk.
Last year, Mr Forrest, chairman of Fortescue Metals Group, resigned as chairman of Poseidon because of his “overwhelming philanthropic duties”. He was elected to the Poseidon board as chairman in July 2007 at the time of a boom in nickel prices.
The billionaire also declined to participate in another equity raising by the nickel minnow in May. Mr Forrest started 2014 with 33 per cent of Poseidon shares, but according to Bloomberg he now holds just over 23 per cent of the company.
