Nickel producer Belvedere Resources (BEL-V) plans to expand its production capacity with the purchase of the Luikonlahti mill and concentrate facility in eastern Finland.
The Luikonlahti facility is ideal for processing ore from a number of Belvederes 100%-owned nickel projects in the mining districts of Outokumpu and Kotalahti.
Belvedere purchased the Luikonlahti facility from talc producer Mondo Minerals Oy of Finland for C$1.68 million (plus VAT). An additional payment of C$420,000 (plus VAT) is due once the government awards an environmental permit for the continuation of operations at the site.
Belvedere said in a statement that the tight supply of processing equipment available globally makes the acquisition a logical addition to its portfolio, adding substantial value at low cost to the company and enabling the fast-track commissioning of its second production centre in Finland.
The company also said that the mill is well maintained and in excellent condition.
The deal is made up of 35 hectares of land and buildings, a valid mining lease, a tailings dam, and an assay laboratory.
The Luikonlahti concentrate facility was commissioned in 1968 with a nominal capacity of 500,000 tonnes per annum of copper-cobalt-zinc ore.
Mondo Minerals bought the facility in the early 1980s and converted it to talc-nickel production.
At that time, one of the facilitys three mills was removed leaving a capacity of 200,000 tonnes per annum of talc ore. The mill was in production until December 2006, and has been on care and maintenance since then.
Belvedere currently produces 2,200 tonnes annually of payable nickel metal in concentrate from its 100% owned Hitura nickel mine in western Finland.