London-listed European Nickel invests $ 48 million or over 2 billion pesos in nickel-laterite projects in the Philippines.

The firm said it had acquired a 19.3 percent interest in Toledo Mining Corp. and a 18.7 percent direct interest in the Philippines’ Berong Nickel Corp., whose nickel deposits are located in Palawan.

“This transaction significantly expands European Nickel’s strategic nickel-laterite interests in the Philippines with two large deposits,” the company said. European Nickel acquired a total of 5,691,019 shares in Toledo for 11.4 million pounds ($ 22.2 million). It also bought the interest in Berong Nickel Corp. for $ 24.4 million from Australia-based Investika.

In addition, the firm acquired an 18.7 percent interest in China Nickel Corporation from Investika.

The Caldag project in Turkey remained a near-term priority, Managing Director Simon Purkiss said.

There was long-term growth potential of the Philippines, the firm said.

“This acquisition is in line with our strategy to increase our critical mass, whilst further advancing our objective to become a mid-tier, low-cost nickel producer,” Purkiss said.

Initial activities are centred on developing a directshipping laterite operation at Berong, whereby the ore will be sold FOB Philippines to nickel smelters.

The company has an economic 56.1 percent interest in the Berong, Moorson, Long Point and Ulugan deposits (referred to collectively as the Berong Deposit), all on Palawan Island, which have a combined resource of approximately 275 million tonnes of nickel ore at around 1.3 percent nickel (ni). The company also has interests in an additional laterite property, Celestial whicha resource of approximately 75 million tonnes at around 1.25 percent nickel.

Both Berong and Celestial deposits total a combined, resource of some 350mt at 1.3 percent nickel.

Berong is believed to be the world’s fourth largest nickel laterite resource Company. Together, Berong, Ipilan and Ulugan represent world class projects with a combined resource of some 345 million tonnes at 1.3 percent nickel and an estimated total nickel content of more than 4.6 million tonnes. The deposits offer the potential to recover both limonite and saprolite ore.

A long term laterite ore Supply Agreement has been signed with Queensland Nickel Pty Ltd, a BHP Billiton group company. The laterite ore will initially be shipped from the Company’s operations at Berong to QNPL’s Yabulu Refinery in North Queensland, Australia.

The Supply Agreement is for a 5 year term with an option to extend for a further 5 years at the election of QNPL.

Project activities completed include the coastal stockpile drying pad area and associated siltation management system, the assay laboratory and the potable water systems. Designs and costings were completed for the permanent offices, accommodation village, crusher and batch plant facilities, workshop facilities, Dangla Road, Berong airstrip upgrade, and the pedestrian bridge over the Berong River. The design of the trestle conveyor and alternative ship loading options continue.