Stonehenge abandons Indonesian nickel plans
29th September 2008, 13:45 WST
Tin and nickel company Stonehenge Metals has abandoned plans to acquire an 85 per cent stake in an Indonesian nickel project, deciding competing claims to the project represented an unacceptable risk to shareholders.
The company announced in April that third party exploration permits extended over the Mandiodo nickel project, on the Indonesian island of Sulawesi, and had been working with its advisers to establish their validity.
But Stonehenge said in an announcement today that, while the project was commercially attractive, the claims remained unresolved.
“In this environment of uncertainty Stonehenge believes that it is in the best interests of shareholders not to proceed with settlement of the acquisition at this time,” the firm said in an announcement.
Both Stonehenge and the project vendor have agreed to terminate their Heads of Agreement, with Stonehenge to convert its investment to date into a 5 per cent shareholding in the entity that seeks to control the project.
The company said it would retain potential exposure to the project while reducing its risk and eliminating further financial commitments with the move.
“The directors are hopeful that the issue of competing permits over the area comprising the Mandiodo exploration permits will in time be resolved therefore allowing Stonehenge to potentially re-enter negotiations with the vendors,” Stonehenge said.
Shares in the company were unchanged at 6.5 cents at 1.35pm WST.
PERTH
ANDREW HOBBS
Tin and nickel company Stonehenge Metals has abandoned plans to acquire an 85 per cent stake in an Indonesian nickel project, deciding competing claims to the project represented an unacceptable risk to shareholders.
The company announced in April that third party exploration permits extended over the Mandiodo nickel project, on the Indonesian island of Sulawesi, and had been working with its advisers to establish their validity.
But Stonehenge said in an announcement today that, while the project was commercially attractive, the claims remained unresolved.
“In this environment of uncertainty Stonehenge believes that it is in the best interests of shareholders not to proceed with settlement of the acquisition at this time,” the firm said in an announcement.
Both Stonehenge and the project vendor have agreed to terminate their Heads of Agreement, with Stonehenge to convert its investment to date into a 5 per cent shareholding in the entity that seeks to control the project.
The company said it would retain potential exposure to the project while reducing its risk and eliminating further financial commitments with the move.
“The directors are hopeful that the issue of competing permits over the area comprising the Mandiodo exploration permits will in time be resolved therefore allowing Stonehenge to potentially re-enter negotiations with the vendors,” Stonehenge said.
Shares in the company were unchanged at 6.5 cents at 1.35pm WST.
PERTH
ANDREW HOBBS