First Nickel has announced it has financing in place to shortly begin operations at its Lockerby Mine in Sudbury.
“I am very pleased to confirm that all of the key components of our financing are in place, and we remain on track to be in production again soon,” First Nickel president and CEO William Anderson said in a news release.
Anderson said he anticipates operating later this year as “one of the very few publicly listed producing nickel companies in North America.”
The company has arranged for the forward sale of 15 million pounds of nickel (28 per cent of the current reserve), at an average price of US$10.37, and 12 million pounds of copper (34 per cent of the current reserve), at an average price of US$4.11, to Societe Generale, a European corporate and investment bank, and the Commonwealth Bank of Australia.
Earlier in July, the company completed a $5-million private placement of units of the company to generate working capital and set in place hedging conditions.
Once in full production, expected in mid-2012, the company anticipates operations of 10 million pounds payable nickel and seven million pounds payable copper.
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