Belvedere Acquires Finnish Nickel Assets
Belvedere Resources, a Canadian junior
company headquartered in Vancouver,
reported on March 23, 2007, that it has
signed a final purchase agreement to
acquire the Hitura nickel mine in Finland
from Outokumpu Mining, as well as the
55% of Finn Nickel that Belvedere does
not already own.
Hitura is an operating mine and concentrator
that currently produces 2,200
mt/y of nickel in concentrates. As of
December 2006, Hitura had remaining
reserves of 919,000 mt, grading 0.61%
nickel, and remaining measured and
indicated resources of 1.7 million mt,
grading 0.71% nickel. Belvedere will
acquire the Hitura mine as a going concern,
with all personnel, plant, and
equipment. In exchange, Outokumpu
receives about 7.5 million Belvedere
shares, with half warrants attached.
Finn Nickel holds a number of
advanced nickel, copper, and cobalt projects
in southern Finland. Its current
resources total 21,000 mt of nickel and
14,000 mt of copper, indicated; 15,000
mt of nickel and 5,000 mt of copper,
inferred; and 13,000 mt of nickel and
30,000 mt of copper, historical. Belvedere
acquired its initial 45% holding in
Finn Nickel in 2006 for €1 million, cash.
The remaining 55% of Finn Nickel will
be purchased from the private shareholders
of Finn Nickel for about 8.2 million
Belvedere shares. A further 1.5 million
shares will be issued to the private shareholders
of Finn Nickel conditional on the
properties receiving the necessary agreements
for the rapid start-up of nickel
operations prior to final closing of the
transaction.