Victory Nickel has just announced that its Board of Directors has approved the development of the 100%-owned Minago sulphide nickel mine located on the Thomson Nickel Belt in Central Manitoba.
With this approval, management now faces the task of financing the project to production. The company says the task at hand is to secure a joint venture arrangement which will help accomplish this goal.
Because of the magnitude of the frac sand component, Victory Nickel says there is potential to joint venture each of the nickel and frac sand at the site. Equipment leasing is expected to provide approximately $100 million of the $500-600 million capex required over the next three-and-a-half to four years of development.
Approximately $75 million is needed to begin development of the project this winter and sustain it until the end of 2012.
The sum will finance dewatering of the property, early site works, the construction of the electrical supply and distribution system, the removal of the 10-m layer of overburden and commencement of detail engineering.