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:: Processing Plant Purchase is an Enabling Transaction for the Kylylahti Project
Vulcan has acquired a package of assets comprising an established processing plant, copper Resources and nickel Resources from the Bankruptcy Estate of a Finnish subsidiary of Canadian mining company Belvedere Resources.
The principal asset acquired is the Luikonlahti processing plant which has a capacity of 350,000tpa upgradeable to 600,000tpa and is located only 45km from Vulcan’s Kylylahti deposit. The plant is permitted and fully serviced.
The purchase price is €4.71m2 (A$7.6m) for the plant, various Resources, mineral tenements, real estate and buildings. A deposit of €1.4m has been paid with settlement due by year end.
The plant is currently on care and maintenance and the estimated cost for its refurbishment and upgrade is €6-7m (A$9.7-11.3m).
3.3Mt of copper-nickel-cobalt Resources have also been acquired in the Outokumpu (Kylylahti) area. The Resource inventory in this area now totals 15.6Mt. Vulcan now controls this famous mining camp.
The Kylylahti Definitive Feasibility Study is to be reviewed and optimised based on the Luikonlahti plant rather than construct an all new plant and associated infrastructure which was estimated in the April 2008 Definitive Feasibility Study to cost €85m (A$137m).
4.3Mt of nickel Resources were also acquired in two project areas; Kotalahti and Vammala.
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