Joint-venture partners Jordex Resources (TSE) and Venezuelan company Corporacion Caracas have filed notice that they intend to sell a further 75% interest in the Loma de Hierro laterite nickel deposit to Anglo American.
Anglo currently has a 10% stake in the project and, under a revised agreement, can purchase the 75% interest from Jordex and its partner for US$33 million.
Anglo has six months to make a production decision and proceed with acquisition of the 75% interest.
If it does not proceed with the purchase, the major will lose its purchase option and be left with a 10% working interest.
Loma de Hierro contains an estimated 44 million tons grading 1.5% nickel plus 18.3% iron, based on a cutoff grade of 0.8% nickel.
A feasibility study estimates the project will produce 40 million lb. of nickel per year for the first seven years, dropping to about 35 million lb. for the remaining 20 years of mine life.
If Anglo proceeds, Jordex and its partner will retain a 15% interest in the project, which is about 50 miles southwest of Caracas.
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