Proactiveinvestors Australia

European Nickel appoints Polo Resources MD Neil Herbert as non-exec director

Mon, 28 Jun 2010 19:29:00 +1000

European Nickel (LON, PLUS, ASX: ENK) has appointed Neil Herbert as an independent non-executive director, to aid the company as it progresses towards becoming a mid-tier nickel laterite producer. Herbert is the executive co-chairman and managing director of Polo Resources (LON, TSX: POL).

"I am delighted to welcome Neil to the Board. I believe his business acumen and extensive experience working for listed companies will bolster the board and provide invaluable advice as we progress European Nickel towards our ultimate aim of being a mid-tier nickel laterite producer", European Nickel deputy executive chairman Simon Purkiss stated.

The company highlighted that Herbert has over 20 years experience in finance, and he has been involved in the management of mining and exploration companies for over 12 years. Herbert has held a number of senior executive roles, including Finance Director for UraMin Inc, until its acquisition by Areva NC for US$2.5 billion and Group Financial Controller for Antofagasta Plc.

The company is currently finalising a merger with Rusina Mining (ASX:RML; LON:RMLA). Back in February, European Nickel and Rusina Mining signed the merger deal to form a ‘new and significant nickel development company’. European Nickel is acquiring Rusina through an equity-based transaction which, in February, valued Rusina at approximately £18.1 million and is capped at £27.1 million.

The combined group will have a total attributable resource base of 1.35 Mt (million tonnes) of contained nickel, with forecast production of 45,000 tonnes per annum from its two projects, Çaldağ and Acoje.

Earlier this month, European Nickel published an interim statement, in which it said the first half marked “progress on all fronts” after agreeing the merger with Rusina and working to secure sufficient funds to complete project financing of the Caldag nickel project in Turkey and recommence work on the feasibility study at the Acoje nickel propject in the Philippines.

With associated financing deals, will provide the company with £6.7 million of additional funds, which, along with Rusina’s cash resources of US$1.6 million, should be enough to complete the Caldag financing. European Nickel also reported that its discussions with Western banks had progressed significantly, resulting in joint mandate letters with Societe Generale and UniCredit, which will act as initial mandated lead arrangers for the Caldag project financing, targeting completion of the debt funding by the end of the year.

The securing of the Western bank finance allowed the company to lapse the option granted to JXTC to take a 20% equity participation in Caldag for a US$20 million investment and the purchase of 100% of the project’s production, with European Nickel saying that the price was no longer appropriate given the project’s total value of US$285 million.

The company stated that the sale of Caldag’s production to JXTC was still a possibility, though it was also in negotiations with other parties.

Rusina Mining shareholders approve European Nickel merger

Wed, 02 Jun 2010 16:26:00 +1000

The merger between European Nickel (LON:ENK) and Rusina Mining (LON:RMLA, ASX:RML) took another step forward today, as Rusina shareholders approved the scheme of arrangement by an overwhelming majority – with 99.56% voting in favour of the deal.

Under the terms of the merger, Rusina shareholders will receive 1 European Nickel new share - after a 1:4 consolidation - for every 5 Rusina shares.

The company will now apply to the Federal Court of Australia to approve the deal, subject to approval, the company will subsequently lodge the Court orders with Australian Securities and Investments Commission, and the merger will become effective from that date.

European Nickel said it will announce its timetable for listing on the Australian Securities Exchange (ASX) shortly.

Back February, the companies signed a merger deal to form a ‘new and significant nickel development company’. European Nickel proposes to acquire the entire issued share capital of Rusina through an equity-based transaction which, in February, valued Rusina at approximately £18.1 million and is capped at £27.1 million.

The companies consider the merger to be a logical outcome of their joint venture for the Acoje nickel project in the Philippines, consolidating the ownership structure of the project ahead of critical development and financing decisions. Under the current joint venture agreement, European Nickel is providing its heap leach technology and contributing US$10 million towards a definitive feasibility study, to earn a 40% interest in the Acoje project.

Upon completion, the current Rusina shareholders will own approximately 27.3% of the merged company.

In addition to the jointly developed Acoje nickel project in the Philippines, the enlarged company will also be progressing European Nickel’s Çaldağ nickel property in Turkey. The combined group will have a total attributable resource base of 1.35 million tonnes of contained nickel, with forecast production of 45,000 tonnes per annum from its two projects, Çaldağ and Acoje.

Last week, in relation to Çaldağ, European Nickel appointed Société Générale and UniCredit Bank AG to arrange a US$300 million term loan facility and US$25 million over-run facility for the project’s development.

The company appointed Société Générale and UniCredit as the Initial Mandated Lead Arrangers (IMLAs), and the institutions have signed a joint mandate letter and provided an indicative term sheet for the financing.

The IMLAs intend to commit US$50 million each, and In due course, it is anticipated that a number of other financial institutions will join the IMLAs and form a club of banks to complete the financing. European Nickel noted that Société Générale was part of the original group of banks who arranged the debt financing of Çaldağ in 2006/2007.

Previously, the company was trying to forge a deal with a consortium of Chinese backers, and earlier this month, European Nickel announced this new financing direction as it sought a deal with a consortium of western banks.

“Along with our advisers, Endeavour Financial Corporation, we will continue to fast track the securing of the project financing during the second half of 2010", European Nickel MD Simon Purkiss commented.

Rusina Mining updates European Nickel merger timetable

Tue, 27 Apr 2010 08:45:00 +1000

Rusina Mining (AIM: RMLA, ASX: RML) and European Nickel PLC (AIM/PLUS: ENK) have updated the timetable for the proposed merger of the companies by way of a Scheme of Arrangement in Rusina.

The timetable has been extended due to an unavailability of court dates. The following timetable is indicative only and may be subject to change.

Last day for trading in Rusina shares on ASX and AIM after close of business of the respective exchanges
Scheme becomes binding (Effective Date) - 10 June 2010.

Merger Implementation Date, Scheme Consideration issued to Scheme Participants - 21 June 2010.

European Nickel CDIs commence trading on ASX (subject to ASX approval) and New Shares commence trading on AIM (subject to AIM approval) - 24 June 2010.

The rationale for the merger is to create a larger, stronger company that will be better able to finance its development projects and grow into a mid-tier nickel producer.

European Nickel and Rusina Mining – the sum of the parts

Wed, 07 Apr 2010 16:06:00 +1000

In a move that the market had long been anticipating, European Nickel (AIM:ENK) and Rusina Mining (AIM:RMLA, ASX:RML) announced on 2 February their intention to merge. The two companies have been working closely together for three years at Rusina’s Acoje project on Luzon in the Philippines, where European Nickel’s proprietary heap leach technology - developed at their Caldag laterite mine in Turkey - is being successfully brought to bear on Acoje’s tropical nickel laterites.

The all-paper merger exchanges four European Nickel shares for every five Rusina shares, offering Rusina’s shareholders a minimum 15.5% premium, and valuing Rusina at £ 18.1 million at the time of the announcement. But the deal is structured to accommodate variations in the share prices of both companies up to a total value for Rusina of £27.1 million before any adjustment will be made to the exchange ratio, which means that a sustained improvement in the share price of European Nickel to 11.2p or beyond could leave Rusina shareholders with a far better deal – a premium of up to 73%.

Following the announcement this week of significant developments in the long-drawn out Caldag project finance negotiations, uncertainty over which has inhibited European Nickel’s share price for some months, that value cap may well now be called into play.

European Nickel’s Simon Purkiss stated at their recent AGM that renewed interest from Western banks in financing Caldag was being actively pursued as a alternative to the on-going Chinese funding process, and this week he was able to tell the market that term sheets have now been presented and are being negotiated with the expectation of mandating a group of arrangers to lead the financing during the second quarter 2010.

But the Chinese are still at the table – and very willing to stay there - and so a short 6-week extension to the Financing Framework Agreement with Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited (JXTC) and China Tianchen Engineering Corporation (TCC) has been agreed. This will allow extra time for the Chinese export credit agency to provide a Letter of Intent and for the Industrial and Commercial Bank of China to prepare a term sheet for the US$350 million of project finance required for Caldag. In addition, the Jiangxi Provincial Government’s approval for JXTC’s purchase of 20% of the Çaldağ project for US$20 million is nearing completion, subject to the finalisation of the debt financing. The BHP Billiton Offtake Termination Agreement – commencement of which is contingent on completion of financing - has also been extended.

Purkiss was also able to announce that following new legislation in Turkey, Caldag would benefit from tax incentives - including the reduction of corporate tax to 4% - which would allow half of the capital cost of the project to be recouped in tax savings. Taken in conjunction with the terms of the JXTC offtake agreement, these incentives increase the project NPV of Caldag – based on $6 nickel - by almost 40% to US$285 million.

The market welcomed the news, and at the time of writing, European Nickel’s share price had reached 9.0p, almost halfway between the original 10 day VWAP and the value cap equating to 11.2p…

Meanwhile, in the Philippines, Rusina Mining have taken one more step down the path to full scale production at Acoje with the granting of an Environmental Compliance Certificate last week. The ECC is perhaps the most important element in the long permitting chain which stretches from initial exploration to mining and processing, and whilst there are still a number of environmental hurdles to be cleared, the key components of the project are now approved.

Acoje started life 75 years ago as a metallurgical chromite mine, and was the Far East’s leading producer for many years. Nickel and appreciable amounts of platinum group metals were also mined from the eastern section of the orebody for a brief period in the 1970s. When Rusina acquired the project back in 2003, the original intention was to further develop the sulphide orebodies and establish a nickel/PGM mining operation. But times change, markets change, and accordingly, so do exploration and development priorities. Today, Rusina is focused primarily bringing into production the nickel laterite resources discovered at Acoje over the last five years. This JORC compliant resource – growing as drilling continues – is now over 50 million tonnes of combined limonite and saprolite at a grade of approximately 1.1% nickel.

The route to exploiting the laterites is two-fold: in the short-term, via direct shipping of ore to China and Japan, and in the medium and long term, via a heap-leach mining and processing operation utilising European Nickel’s proprietary technology.

Direct shipping commenced in 2007 in partnership with DMCI Holdings of Manila, who undertook all funding, mining, grade control, rehabilitation, road and port development work, as well as marketing and sales, in return for 50% of the profits – effectively a free carry for Rusina. Regular shipping has been on hold owing to the depressed nickel price climate, but the partners have now agreed to resume operations, based on selective shipments of up to 200,000 tonnes of higher grade (>2%) ore. As the DSO market continues to be volatile, shipments will only be made as and when they can satisfy the partners’ pre-agreed cost/profit criteria.

The laterite processing operation at Acoje has now progressed to full feasibility studies. The heap-leach process has been developed and trialled over the last three years at Caldag, whilst adaptations to cope with a wet tropical climate with abundant rainfall have been tested extensively at BHP’s Cerro Matoso in Colombia, and at Acoje itself. The process offers distinct advantages over other laterite process routes such as high pressure acid leaching, involving less than half the capital expenditure and much lower unit production costs. A pre-feasibility study published at the end of 2008 found the project economically viable at a nickel price of US$6 per lb, based on a 3 million tpa mining operation to produce 24,500 tonnes of nickel and 930 tonnes of cobalt in a mixed hydroxide product. An extended heap-leach trial forms part of the Acoje feasibility study, and is now almost ready to commence trialling.

The base process developed by European Nickel is simple. Mined ore is transported to the process site, where it is crushed and - if necessary – agglomerated, before being stacked on the leach pad. The ore is then irrigated with dilute sulphuric acid, which leaches out the contained metals. The leach solution is collected and returned to the pad. Once the optimum metals recovery (approx 78% nickel at Acoje) has been achieved the solution is pumped to the process plant, where, first, the iron is precipitated out of the solution by raising the pH with limestone. Further raisings of the pH with soda ash precipitate out the nickel and cobalt in a two stage process, producing primary and secondary saleable mixed hydroxide products.

There is also scope to adjust the final process stages allowing the nickel and cobalt to be separated out into individual hydroxide products, which would increase payability. These options – which include Resin in Pulp for iron removal, and Ion Exchange to produce a pure nickel product - will form part of the heap leach trial.

The trial heap-leach operation is now poised to commence. The trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates on a full scale basis as well as demonstrating the rain control methodology. In addition the trial facility will showcase the clean, safe and environmentally friendly nature of the process to the government and local stakeholders. All the required equipment and components for ore crushing and agglomerating are fully commissioned. The downstream processing plant shed has been erected, and the Resin in Pulp, Ion Exchange and Centrifuge are presently being installed. All that remains is the stacking of the pad, following which irrigation of the ore with acid can commence…

Thus far, the cost of developing the Acoje laterites towards full feasibility has been borne by European Nickel, under a joint venture agreement made almost exactly three years ago, which allowed European Nickel to earn up to 40% of the project. Following the merger, Acoje will be owned 80% by the new combined entity and 20% by Filipino partners.

The benefits of a merger to both companies are clear - the combined entity will have a total attributable resource base of 1.35 million tonnes of contained nickel, forecast production of 45,000 tonnes per annum from its two flagship projects, Çaldağ and Acoje, and a combined project NPV at $7 nickel of almost US$1 billion. Crucially, with around US$800 million to raise to bring both Caldag and Acoje into full production, it will also have a far stronger balance sheet, and as a mid-tier aspirant, will have greater credibility in the funding rounds still to come.

The merger will also consolidate ownership of Acoje, and rationalise the strategic relationships between European Nickel/Rusina and their Chinese allies at JXTC and TCC. With the current Chinese influence on the nickel market, the new MHP refinery being constructed by JXTC, TCC’s status as ECP contractor for both projects, and the involvement of both in the Caldag funding, this merger – if approved – will square a number of overlapping circles very neatly and offer value far in excess of the sum of its parts.

The author holds shares in European Nickel

Rusina Mining granted Key ECCs for Acoje nickel-chromite project in Philippines

Thu, 25 Mar 2010 10:27:00 +1100

Rusina Mining (ASX: RML, AIM: RMLA) has announced the issuance of two additional Environmental Compliance Certificates (ECCs) for the Acoje nickel-chromite project on Luzon Island in the Philippines.

The company is developing the Acoje Heap Leach Project in partnership with European Nickel plc, which is earning a 40% project interest by spending US$10m on the feasibility study.

Recently, both companies announced a proposed merger. The merger’s Scheme Booklet is expected to be forwarded to Rusina shareholders in April.

An ECC sets out the guidelines and measures for the development of the intended project and is the principle permit for mining operation within the Philippines. It is issued by the Philippines’ Department of Environment and Natural Resources (DENR) through the Environmental Management Bureau (EMB).

The Acoje Project already has two existing ECCs that allow the Direct Shipping of Nickel Laterite Ores in addition to the operation of a nickel laterite Pilot Heap Leach Facility.

The new ECCs cover the construction and operation of the full scale nickel Heap Leach Project as well as the separate operation of surface/underground mining and processing of chromite ores at Acoje.

There are several ECC conditions still to be satisfied or permits issued before either the Nickel Heap Leach Project or the Chromite Mining Project could commence construction. A number of these involve the revision and/or continuation of existing conditions from the previous ECCs.

The nickel heap leach ECC covers the extraction and processing of nickel laterite ore into a mixed hydroxide product.

The chromite mining project certificate is an enhancement of and extension to the ECC issued on 22 February 2008 for the nickel Direct Shipping Ore (DSO) operations.

Rusina Mining boosts cash balance in H1 2009 with fundraising

Tue, 16 Mar 2010 19:59:00 +1100

Rusina Mining (ASX: RML; AIM: RMLA) has focused its efforts on developing projects with shorter pay-off period in the six months to 31 December 2009, while raising funds to improve its cash balance.

Rusina Mining made no revenues after making A$68,687 in H1 2008 and posted losses of A$2.4 million compared to a loss of A$1.4 million for the equivalent period of the previous year, bringing losses per share up to A$0.72 compared to last year’s A$0.59.

Current cash and cash equivalents stood at nearly US$5 million compared to A$2.9 million at 31 December 2008, while total current assets increased from A$19.2 million to A$21.97 million. During the period, Rusina Mining has raised some A$5.7 million through a placing.

The company undertook the minimum required expenditure in its early phase exploration projects, intending to concentrate on the projects that are most likely to achieve early cash flows.

Rusina has been focused on progressing the Acoje nickel heap leach feasibility study with the successful completion of the trial heap leach facility.

The nickel heap leach trial pad and pilot plant were opened on 9 December 2009. The trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates. All electrical work on the agglomerator, binder plant and associated monitoring equipment has been completed and the agglomerator and associated conveyers are now fully commissioned. The downstream processing plant shed was erected in post-period, while the resin in pulp, ion exchange and centrifuge will occur in Q1 2010.

Leaching will commence once the pad has been stacked and irrigation pipes placed over the heap.

The project is being funded by JV (joint venture) partner European Nickel (AIM: ENK), which is spending US$10 million to earn a 40% interest. The two businesses entered into a merger agreement after the end of the period.

Rusina is looking to undertake further drilling which seeks to move additional JORC resources from Inferred to Indicated status, also aiming to lower the current forecast cash cost of US$1.60/lb and increase the end payable product. This will lengthen the proposed mine life and increase the Net Present Value (NPV) from its present US$375 million.

European Nickel and Rusina merger satisfies due diligence, deal expected to complete in May

Tue, 02 Mar 2010 16:55:00 +1100

European Nickel (AIM, PLUS: ENK) and Rusina Mining NL (AIM: RMLA, ASX: RML) announced that they have satisfied the due diligence conditions of their proposed merger. The transaction is now expected to complete in May 2010. In February European Nickel signed an agreement to acquire Rusina in an equity-based deal, with a capped value of up to 27.1m.

"We are pleased to report passing the first milestone for this transaction. The scheme booklet is now being prepared and is due to be mailed to Rusina shareholders in early April 2010, allowing shareholders to vote on the transaction in early May 2010", Rusina MD Robert Gregory commented.

The Rusina directors have unanimously recommended that Rusina shareholders vote in favour of the proposed scheme, and in the absence of a superior proposal, each director intends to vote in favour of the transaction in respect of the Rusina shares they own or control at the date of the scheme meeting.

The two companies have been developing the joint venture Acoje nickel project in the Philippines. Under the current agreement, European Nickel is providing its heap leach technology and contributing US$10 million towards adefinitive feasibility study, to earn a 40% interest in the Acoje project.

The merger with Rusina is a logical transaction which will secure Acoje's future, consolidates our asset base in the Philippines and strengthens the management team. The heap leach trial site has finished construction and a 3,000 tonne ore sample will be processed, European Nickel MD Simon Purkiss commented in the yesterdays full-year results.

Upon completion, the current Rusina shareholders will own approximately 27.3% of the enlarged company.

In a previous joint-statement the companies said the combined company would benefit from synergies such as the improved access to development capital through an enlarged balance sheet, a strengthened management team and geographical and project diversification across Turkey, the Philippines and Albania.

European Nickel and Rusina Mining complete due diligence on merger

Tue, 02 Mar 2010 07:58:00 +1100

European Nickel PLC (AIM, PLUS: ENK) and Rusina Mining (AIM: RMLA, ASX: RML) have announced that the due diligence conditions contained in their Merger Implementation Agreement have been satisfied and accordingly the Scheme of Arrangement transaction is no longer subject to these conditions.

Commenting on this milestone, Simon Purkiss, Managing Director of European Nickel, said, “we are pleased to have satisfied our due diligence requirements on schedule and look forward to a successful close of this transaction in May 2010.”

Robert Gregory, managing director of Rusina, said, “we are pleased to report passing the first milestone for this transaction. The scheme booklet is now being prepared and is due to be mailed to Rusina shareholders in early April 2010, allowing shareholders to vote on the transaction in early May 2010.”

European Nickel is an emerging mid-tier nickel laterite producer focused on growth. With 869,000 tonnes of attributable nickel resources and assets in Turkey, the Philippines and Albania, European Nickel is targeting 50,000 tonnes of annual nickel production within five years.

The Çaldag project in Turkey is European Nickel's flagship asset with near-term production and will be the world's first commercial scale nickel laterite heap leach operation.

Rusina Mining is a Philippine focused mineral exploration and development company. It has an experienced management team that is highly knowledgeable on the “soft” issues of mining and has significant partnering expertise. Rusina is developing the Acoje nickel laterite project with joint venture partner European Nickel PLC, which is expected to complete a Definitive Feasibility Study in 2011.

With an attributable JORC resource of 495,000 tonnes of contained nickel and a diversified exploration portfolio across nickel, chromite, platinum and copper/gold Rusina is focused on bringing its projects into production as quickly as possible.

Rusina Mining to merge with European Nickel PLC

Wed, 03 Feb 2010 05:58:00 +1100

The objective of the merger is to create a larger, stronger company that will be better able to finance its development projects and grow into a mid-tier nickel producer.

Rusina Mining has A$4.95 mln in cash as at Dec 31 2009

Sat, 30 Jan 2010 00:03:00 +1100

Rusina Mining NL (AIM: RMLA, ASX: RML) issued an activities report for the quarter to December 31 2009, saying that at the end of the period, the company's cash on hand was A$4.95 million. In addition, receivables owed by its joint venture partner on the Acoje nickel heap leach project totaled US$0.8 million.

Rusina and joint venture partner European Nickel PLC (AIM: ENK) announced last month that the Acoje nickel heap leach trial pad and pilot plant was officially opened on December 9 2009 on Luzon Island in the Philippines.

The crusher was commissioned and the 3,000 tonnes of nickel laterite ore, a mixture of limonite and saprolite, was completed within the required specifications on the first pass.

All electrical work on the agglomerator, binder plant and associated monitoring equipment has been completed and the agglomerator and associated conveyers are now fully commissioned. All water and reticulation equipment required for agglomeration and stacking is in place and will commence pressure testing during late January.

The downstream processing plant concrete pad has been completed with shed erection due to commence shortly. The Resin in Pulp, Ion Exchange and Centrifuge installation is scheduled to commence in late February.

Leaching will commence once the pad has been stacked and irrigation pipes placed over the heap. An HDPE raincoat will cover both the pad and the ponds, Rusina said in its update.

DMCI Mining has notified the company that it is intending to resume operations at Acoje in the first quarter of 2010. DMCI have received buyer interest for higher grade nickel laterite ore and will seek to undertake selective shipments from the Santa Cruz purpose built loading facility, Rusina said.

Since the end of the quarter under review, Rusina has modified the existing Direct Shipping Ore (DSO) agreement with DMCI to enable the mining to recommence – as announced a fortnight ago. In accordance with the terms of the modified arrangement, DMCI shall continue to be responsible for all mining, marketing, transport and capital costs of up to 200,000 tonnes high grade ore at a fixed operating cost whist providing a 50 percent share of profits to Rusina on a shipment by shipment basis. There is an agreed minimum profit before a shipment can take place.

In addition, the modified arrangement includes a substantially reduced fixed incremental cost for lower grade ores, again on a minimum agreed profit on a ship by ship basis. This modified arrangement greatly reduces the risks to both DMCI and Rusina in the volatile DSO market whilst taking advantage of favourable marketing conditions as they arise, Rusina added.

Rusina Mining in discussions to resume shipments of nickel laterite from Philippines

Wed, 13 Jan 2010 08:36:00 +1100

Australian-listed exploration company Rusina Mining (ASX: RML) is investigating the possibility of resuming some selective shipments of nickel laterite ore from its Acoje tenement in the Zambales District on the island of Luzon in the Philippines.

The news came as the company announced it was in discussions with DMCI Mining Corporation over the matter.

The two companies have now modified the existing Direct Shipping Ore arrangement in relation to the mining and sale of nickel laterite ore at the project.

In accordance with the terms of the modified arrangement, DMCI will continue to be responsible for all mining, marketing, transport and capital costs of up to 200,000 tonnes high grade ore at a fixed operating cost whist providing a 50% share of profits to Rusina on a shipment by shipment basis.

There is an agreed minimum profit before a shipment can take place.

Rusina is developing the 24,500 tonnes per annum of contained nickel Acoje project, which has a resource of 50.1 million tonnes grading 1.09% Ni at a cut-off grade of 0.08% Ni.

In September, Rusina secured an investment of A$5.75 million from UK institutional investors.

In addition, the modified arrangement includes a substantially reduced fixed incremental cost1 for lower grade ores, again on a minimum agreed profit on a ship by ship basis. This modified arrangement greatly reduces the risks to both DMCI and Rusina in the volatile DSO market whilst taking advantage of favourable marketing conditions as they arise.

Rusina expects that DMCI will be fully mobilised back to site by the end of this month.

Rusina Mining and European Nickel open Acoje heap-leach trial pad and pilot plant in the Philippines

Fri, 11 Dec 2009 19:02:00 +1100

Rusina Mining NL (AIM: RMLA, ASX: RML) and its joint venture partner European Nickel PLC (AIM: ENK) jointly announced that the Acoje nickel heap leach trial pad and pilot plant was officially opened on December 9 2009 on Luzon Island in the Philippines.

This is the first pilot plant in the Philippines to trial heap leaching technology on nickel laterites. The trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates on a full scale basis as well as demonstrating the rain control methodology. In addition the trial facility will showcase the clean, safe and environmentally friendly nature of the process to the government and local stakeholders, the companies said.

They expect that the crushing, agglomeration and stacking of the heap will commence next week. The 3,000 tonnes of nickel laterite ore, a mixture of limonite and saprolite, is on-site and awaiting processing. Leaching is expected to commence in February 2010.

Under the joint venture agreement European Nickel is providing its heap leach technology and is funding the definitive feasibility study by spending US$10 million to earn a 40 percent interest in the Acoje project.

Rusina is developing the 24,500 tonnes per annum of contained nickel Acoje project which has a resource of 50.1 million tonnes grading 1.09% Ni at a cut-off grade of 0.08% Ni.

In September, Rusina secured an investment of A$5.75 million from UK institutional investors.

Rusina Mining ticks another box at Acoje

Fri, 25 Sep 2009 12:04:00 +1000

Philippines nickel miner Rusina Mining (ASX: RML; AIM: RMLA) has reported the heap leach pad and pilot plant is now complete at its Acoje nickel laterite heap leach project on Luzon Island.

JV partner European Nickels' rolls crusher has been transferred from its Caldag operation in Turkey, and has now arrived on site at Acoje and is in the process of being constructed.

Once constructed, 3,000t of laterite ore that will be tested will be crushed and stacked in its first 3-metre-high pad.

Leaching is expected to commence shortly before Christmas.

Recently, Rusina raised A$5.75 million in fresh capital to develop the nickel-chromite mine at Acoje in the Philippines.

Acoje is located just two shipping days from China, the value of which should not be underestimated. As a potential low cost nickel supplier into Asia, will also assist project economics.

Rusina is currently developing the 24,500 tonnes per annum of contained nickel Acoje nickel laterite heap leach from Acoje.

European Nickel has earned to date, a 20% interest in the project under a broader farm-in commitment to earn a 40% project interest by fully funding the current US$10 million definitive feasibility study (DFS), including a trial nickel heap leach operation, at Acoje.

Rusina will retain a 40% ownership of the project.

Permitting approvals for the full project development are expected to be granted by the end of 2009.

The proposed mine is being designed around a 3mtpa throughput using the same technological footprint as European Nickel’s Caldag mine and heap leach operation in Turkey which is expected to commence construction shortly.

Robert Gregory managing director of Rusina said the trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates on a full scale basis as well as demonstrating the rain control methodology’s.

He said the trial facility will showcase the clean, safe and environmentally friendly nature of the process to the government and local stakeholders.

The company said its is continuing to make significant inroads into further enhancing the economics of the project.

Rusina Mining receives strong investment from UK institutions, raises A$5.75m

Fri, 18 Sep 2009 15:02:00 +1000

UK institutions have strongly supported Rusina's plans to develop a nickel-chromite mine in the Philippines with a A$5.75m placement.

Rusina Mining says heap leach trial complete at Acoje nickel project, Philippines

Mon, 03 Aug 2009 09:06:00 +1000

Rusina Mining NL (ASX: RMA; AIM: RMLA) said the heap leach trial (HLT) at the Acoje nickel project in the Philippines is now mechanically complete, and 3,000 tonnes of laterite ore is in the process of being crushed for the pad.

Construction continues on a steel roof structure to house the downstream Resin in Pulp / Ion Exchange facility which is scheduled to be operational late this year, the group said in an activities update for the three months to end-June 2009.

China Tianchen Engineering Corporation (TCC) has recently completed the re-costing of the prefeasibility study using Chinese construction and material costs. Overall they believe they could reduce the capital costs by 15 percent. TCC will now be appointed to complete the DFS engineering study commencing in October, Rusina said.

Environmental permitting for the full scale heap leach is well underway with the environmental impact assessment already submitted and all requisite permits to construct expected to be completed by November 2009, well ahead of the anticipated disruption of the 2010 presidential elections.

The Company's cash balance at the end of the quarter was A$3.01 million as compared to A$4.4 milion at the end of the prior quarter.

Rusina Mining progressing heap leach trial, aims to reduce capital and cash costs at Acoje

Fri, 03 Jul 2009 12:19:00 +1000

DMCI Mining will suspend operations at the Acoje project. This will not affect the Nickel Heap Leach project on longer term production, which is profitable at current nickel prices.

Rusina Mining has enough cash until late 2010

Mon, 27 Apr 2009 19:09:00 +1000

Rusina Mining NL (ASX: RMA; AIM: RMLA) confirmed it has sufficient cash resources to meet all current commitments through until late 2010, with a cash balance at the end of the third quarter of A$4.4 million as compared to A$4.9 million at the end of the prior quarter.

“The company, like many in the industry, is currently in discussions with other industry participants with a view to completing a corporate transaction involving strategic consolidation,” Rusina said.

It made good progress in the quarter to end-March on the trial heap facility at Acoje in the Philippines. By the end of May 2009 Acoje will have 3000 tonnes under leach, demonstrating the heap leach technology and gathering the necessary data for the definitive feasibility study. All site civil works are complete. The ore for the trials is currently being trucked to the site ready for crushing and agglomeration during May, it added.

Rusina Mining says continued to make progress in first half

Sat, 14 Mar 2009 00:49:00 +1100

Rusina Mining NL said that, despite the significant deterioration in global economic conditions during its financial first half, the company continued to make progress across its key areas of operation in the Philippines.

Most significantly, the period to December 31 2008 saw the finalisation of the pre-feasibility study for the nickel heap leach project at Acoje, utilising partner European Nickel PLC's heap leach technology, the group said in a statement.

Rusina and European Nickel have now moved into the definitive feasibility study (DFS) phase with the construction of the trial leach facility to demonstrate the large scale permeability and recovery of the Acoje ore. First leaching is on schedule for April 2009.

European Nickel is funding the DFS by spending US$10 million to earn a 40 percent interest in the project.

The highlights of the PFS include a JORC compliant indicated resource of 34.41 million tons at 1.09 percent nickel from an inferred plus indicated resource of 50.14 million tons at 1.06 percent nickel using a 0.8 percent cut off grade. Annual production is estimated at 24,500 tons of nickel and 930 tons of cobalt. Total development is estimated to cost US$498 million.

Rusina reported revenue of A$68,687 in the first half compared with nil a year earlier and net losses of A$1.43 million from profits of A$338,901 previously.

Rusina Mining cuts back all non-essential expenditure while JV partners continue

Thu, 29 Jan 2009 00:00:00 +1100

Rusina Mining NL said it had a cash balance of A$4.9 million at the end of the third quarter to October 31 2008 and noted the majority of expenditure and operating activities are now being undertaken by its joint venture partners European Nickel PLC and DMCI Mining.

It has implemented a revised budget that limits and/or defers all non-essential expenditure.

In addition to cash on hand there are receivables of A$2.2m payable from its joint venture partners.

A trial shipment under the nickel laterite mining agreement with DMCI Mining of the Plilippines took place to a Japanese customer in the quarter which was successful. DMCI is reviewing mine plans for possible future cargos. The new year has shown some renewed interest in Direct Ship Ore cargos, particularly in high iron content but margins remain low.

Regarding the Acoje nickel project, in which Rusina Mining holds a 40 percent interest, the third quarter saw the release of the pre feasibility study being conducted by European Nickel PLC. The companies anticipate that the resources will be upgraded at by infill drilling during 2009 which should significantly increase the net present value and the rate of return of the project in the future through greater mine life, Rusina said.
The project has now moved into the definitive feasibility study phase with the construction of the trial leach facility to demonstrate the large scale permeability and recovery of the Acoje ore. First leaching is on schedule for April 2009, it added.

Rusina Mining cuts back all non-essential expenditure while JV partners continue

Wed, 28 Jan 2009 00:00:00 +1100

It has implemented a revised budget that limits and/or defers all non-essential expenditure.

In addition to cash on hand there are receivables of A$2.2m payable from its joint venture partners.

A trial shipment under the nickel laterite mining agreement with DMCI Mining of the Plilippines took place to a Japanese customer in the quarter which was successful. DMCI is reviewing mine plans for possible future cargos. The new year has shown some renewed interest in Direct Ship Ore cargos, particularly in high iron content but margins remain low.

Regarding the Acoje nickel project, in which Rusina Mining holds a 40 percent interest, the third quarter saw the release of the pre feasibility study being conducted by European Nickel PLC. The companies anticipate that the resources will be upgraded at by infill drilling during 2009 which should significantly increase the net present value and the rate of return of the project in the future through greater mine life, Rusina said.

The project has now moved into the definitive feasibility study phase with the construction of the trial leach facility to demonstrate the large scale permeability and recovery of the Acoje ore. First leaching is on schedule for April 2009, it added.

Better news for Rusina Mining at Acoje

Fri, 19 Dec 2008 00:00:00 +1100

The ‘main course’ for Rusina is the 40:40:20 joint venture between Rusina, European Nickel and DCMI to process the bulk of the Acoje laterites, using European Nickel’s heap leach technology.

Rusina Mining Announce Positive Results from Feasibility Study for Acoje, Philippines

Fri, 28 Nov 2008 00:00:00 +1100

Rusina Mining NL announced positive results from the pre-feasibility study on the Acoje deposit in the Philippines using European Nickel's heap leach technology. European Nickel and Rusina will now commence a definitive feasibility study, which will be due for completion by late 2009.

The pre-feasibility study results demonstrate an economically viable nickel laterite project using heap leach technology producing 24,500 tonnes a year of nickel and 930 tonnes of cobalt. Mining will be at a rate of three million tonnes per annum, with a low strip ratio of 0.46, and cash costs are estimated at US$3.10 per pound of nickel.

Acoje’s total development cost is estimated at US$498 million, including infrastructure and working capital, which equates to a capital cost per annual pound of nickel of US$7.76, the companies said.

The study for the Acoje project is based on a JORC indicated resource of 30.76 million tonnes at 1.12 percent nickel and 0.05 percent cobalt, giving the project an initial mine life of ten years. Further potential resources have been identified, the JORC inferred resources at Acoje and the Zambales chromite deposit, which are expected to extend the mine life beyond 20 years and are expected to be confirmed to JORC indicated resource levels during the definitive feasibility study.

Rusina and European Nickel anticipate that further resources will be upgraded at Acoje by infill drilling in 2009.

European Nickel will earn a 40 percent economic interest in the Acoje deposit by spending US$10 million on the metallurgical heap leach trial, engineering design and permitting, following which Rusina will hold 40 percent and their Philippine partner, DMCI Mining Inc, will hold 20 percent.

Rusina has nice plump cushion to fall back on until cashflow resumes

Tue, 04 Nov 2008 00:00:00 +1100

Casualties of the plummeting nickel prices are already emerging, but astute risk planning has insulated Rusina from the harsh commodity winter. However, there are decidedly positive aspects to t ...

Rusina confident of weathering the storm

Fri, 31 Oct 2008 00:00:00 +1100

Quarterly results from Rusina Mining helped calm investor concerns about the company’s financial position in light of weaker nickel prices. As of 30 September 2008, Rusina reported that it had cash and receivables of A$7.4 million, and that its Direct Ore Nickel Laterite Operation in the Philippines was still shipping ore, albeit at lower rates.

Below is a copy of Robert Gregory’s (Managing Director) letter to shareholders, accompanying the Company’s third quarter operational review, which we thought made excellent reading.

“The current global economic climate is unprecedented in the severity of its impact upon financial and commodity markets. I believe that no company could realistically say that they could have forecast the severity of this event and the effect it would have on their business. Many companies will be unlikely to survive the next 12 months should conditions continue as they are. Through a process of risk identification and mitigation I am sure that some companies will have strategies in place that will place them in a significantly superior situation to their peers. Those companies that were not prepared to deal with at least a possibility of an external shock such is now upon us may not be able to weather the current economic crisis through simple belt tightening.

Rusina has had a long term risk mitigation strategy as part of its everyday operations in the Philippines. The company very early on sought strategic partners both locally and technically to fast track cash flow to shareholders. The Direct Ship Ore agreement is an example of this. Rusina has established cash flow, infrastructure and employment with zero risk to Rusina shareholders by allowing DMCI adequate profit for this endeavour. Under a normal contractor arrangement, Rusina would have had to fund the capital improvements and would have significant ongoing holding costs. Now that the market has deteriorated, DMCI can simply reallocate their equipment and workforce to other areas of their business and be in a position to rapidly remobilise should the market improve. Rusina's upside is maintained with no downside risk.

Rusina's strategy to be a long term, low cost nickel producer is pillared around acid heap leach technology that even under today's depressed nickel prices would be profitable. The companies decision to reduce shareholder risk and partner with European Nickel is now vindicated as EN bear 100% of the costs towards the feasibility study and the construction of the trial heap leach pads at Acoje. As such, Rusina's cash burn is very low. The Company is reducing this even further in the current environment with all non essential expenditure deferred. The Company forecasts that even with no further revenue from DSO that we will be able to meet all our commitments, retaining all key staff, until June 2010*. This is something many other exploration companies cannot presently say.

Of course this does not mean that we plan to bunker down and wait for the credit and commodity markets to return to 'normal'. It is comforting to know we are able to do so however, together with our partners, we believe there are enormous opportunities being created by the current state of the markets, particularly to participate in the consolidation of the sector. The Philippines has been ranked on a global basis equal first for mineral prospectivity** and your Company, Rusina, has demonstrated that it knows how to do business in the Philippines.

Lastly, I would like to address current concerns on the impact of the global credit squeeze on the Company, in particular on how we would be able to fund a potential project of the magnitude of the Heap Leach at Acoje. Certainly, if we were trying to fund this project today there is no doubt it would be extremely difficult. However, by the time the full feasibility is completed by European Nickel in late 2009 we anticipate that the credit markets will have eased. Both our partners and the Company are confident that off-take financing will play a major part in the ultimate financing of Acoje.

I strongly believe that, notwithstanding the state of the current market, your Company has the skills and ability to continue to make significant progress towards the development of its tenements. Our focus is firmly on ensuring the Heap Leach project is fully permitted and ready to build by the end of next year as well as seeking out and taking advantage of all opportunities to build value for our shareholders.”

Rusina Mining CEO acquires more shares

Tue, 28 Oct 2008 00:00:00 +1100

If a director's confidence in his or her company was gauged by share purchases, Robert Gregory of Rusina Mining would be crowned the most confident CEO of all!

Today Rusina Mining announced that Robert Gregory had dipped his toes in the market once again, picking up 179,484 shares at an average price of A$0.0615 per share for a total sum of A$11,019.04.

This share purchase brings Mr. Gregory's total interest in the Company to 1.47%, or approximately 3.6 million shares. Since July 2008, the CEO has exercised options and acquired shares that have increased his interest from less than 0.1 million shares.

Rusina Mining is a mineral exploration company with a range of interests in PGM, Chrome and Nickel projects in the Philippines.

Rusina Mining CEO snaps up more shares

Mon, 20 Oct 2008 00:00:00 +1100

Rusina Mining (ASX:RML, AIM:RMLA), the Philippines focused nickel laterite producer announced that the Company's Managing Director and Chief Executive Officer, Robert Gregory snapped up 26,735 shares at A$0.06 per share.

Following the share purchase, Mr. Gregory holds approximately 3.425 million shares or 1.40% of issued share capital. This was the fifth share purchase by Robert since August.

Rusina Mining completes acquisition of Barlo Project

Mon, 15 Sep 2008 00:00:00 +1000

Rusina Mining, the nickel laterite producer in the Philippines, announced this morning that it had completed the acquisition of the Barlo Exploration Permit from the administrators of Fire Resources Limited.

The Barlo Project is located only 30 kilometres north of Rusina’s current Acoje Nickel-Chromite-PGM project. The Barlo Project covers approximately 4,370 hectares, and produced some 55,000 tonnes of hand sorted ore between 1974 and 1981, estimated to “exceed 10% copper” from a supergene zone.

Rusina intends to test the down dip extensions of the high grade copper zone, and will also conduct additional exploration on other ‘high priority’ targets, including the Happy Valley and Viga prospects. Stream sediment sampling conducted in 2006 at Happy Valley recorded elevated levels of gold, silver and base metals. Previous exploration at the Viga Prospect has also confirmed the potential for copper and gold.

“In addition to the copper and gold potential of the area, the company believes the acquisition of this property is particularly strategic due to reported massive pyrites grading greater than 20% that could provide sulphuric acid for the Acoje nickel project proposed heap leach operations. A pyrite concentrate was previously produced by the Acoje Mining Company at Barlo and sold to local Philippine fertilizer companies” the company added.

Rusina also provided an operation update for Acoje Project. A current 1500 metre drill program is 70% complete, with the priorities of the program altering slightly as requests for chromite ore have increased. DMCI, who are Rusina’s partner and operator of the project, recently sent a trial shipment of chromite ore.

Rusina also announced that a Nickel Heap Leach Pre-feasibility Study under way by European Nickel had been delayed by “a few weeks”.

Rusina Mining CEO exercises 3 million options at 16 cents per share

Tue, 12 Aug 2008 00:00:00 +1000

Rusina Mining (ASX:RML, AIM:RMLA), the nickel laterite producer based in the Philippines, announced today that CEO Robert Gregory has exercised 3 million options with a strike price of A$0.164 cents.

Following the transaction, Mr. Gregory holds 3.215 million shares, or 1.33% of the company. This is the third transaction completed by Rusina’s CEO in the past few weeks.

Rusina Mining is cashed up and knuckling down

Thu, 07 Aug 2008 00:00:00 +1000

In the last quarter, three shipments totalling 160,418 wet metric tonnes grading 1.7% nickel, were shipped into the direct ship ore market in China, helping Rusina to boost its cash and receivables balance to A$10 million, from A$7.3 miln a year ago.

Rusina Mining CEO buys more shares

Wed, 23 Jul 2008 00:00:00 +1000

Rusina Mining (AIM: RMLA), the nickel laterite miner, announced that CEO Robert Gregory acquired 103,500 shares between the 18th and 22nd July. Following the director buys, Mr. Gregory holds 0.089% of the company, or 215,827 shares.