SUDBURY - FIRST NICKEL of Toronto has entered into an agreement to purchase the former Lockerby nickel mine from current owner FALCONBRIDGE. The purchase price will be $8.6 million, including cash, assumption of liabilities and the issuance of 2,182,863 common shares. Falconbridge will have the right to reacquire a 50% interest in the mine should any newly discovered resources contain more than 150 million lb of nickel. Falconbridge will also have the right to purchase all the ore that may be mined.
The Lockerby deposit was discovered by Falconbridge in 1962 and mining began in 1976. Up until Dec. 31, 2003, over 8 million tonnes averaging 1.79% Ni and 1.07% Cu were produced. Recent production was from the East and Depth zones, and First Nickel plans to continue mining from those zones. The mine shut down in September 2004 and has remained on care-and-maintenance since that time.
Go to www.FirstNickel.com to keep abreast of the company's work at Lockerby.