Weak nickel markets have prompted Jordex Resources (JDX-T) to cease funding its minority stake in the Loma de Niquel nickel project in Venezeula.
The company says increases in capital costs and financing-related parameters have reduced the projected return on investment to an acceptable threshold.
As a result of this decision, the company expects that its
current 7.5% interest will be reduced over time to a nominal level.
Jordex was unable to find a buyer for its stake in the project, even though costs are projected to be within the lower tier of nickel producers.
Jordex has about $20 million in its treasury and intends to seek new projects to add to its asset base, which includes numerous exploration projects in North and South America.
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