Mineral Resources (MinRes) wants to negotiate its deal to acquire Poseidon Nickel’s Lake Johnston nickel concentrator and tenures in Western Australia.
Poseidon has said the amended terms don’t align with them at this stage, but are open to negotiations.
The deal was first announced in March, and would originally see MinRes pay $1 million on execution of the binding heads of agreement, $6.5 million on completion of the sale and purchase agreement and $7.5 million a year after completion of the transaction.
MinRes and Poseidon have not announced the details of the proposed negotiation.
“The alternative deal structure presented by Mineral Resources (MRL) did not represent a compelling value proposition for Poseidon’s shareholders at this time,” Poseidon chief executive officer Brendan Shalders said.
“Poseidon is remain(ing) hopeful that MRL will either complete the original deal as documented in the binding heads of agreement or that Poseidon and MRL negotiate a new deal structure which reflects the value we see in the Lake Johnston project.”
Back in March, Poseidon said the $15 million will support its exploration of high-grade nickel discoveries, continuing with reduced care and maintenance activities at its Black Swan nickel project in WA, as well as pursuing new opportunities.
The Lake Johnston nickel concentrator plant has a 1.5-million-tonne-per-year capacity and is capable of being converted to treat lithium ores, including dense media separation fines.
Located approximately 185km southwest of Kalgoorlie, the acquired tenure covers 86km2 with one exploration license and 10 mining leases.
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