Release: Weda Bay Minerals Inc.: Termination of a Product Supply Agreement
Wednesday, June 1 2005 - 12:58 AM WIB
The benefits to Weda Bay Minerals arising from these transactions include:
- The substantial quantity of future nickel and cobalt production from the project is now available for Weda Bay to market to other interested parties on potentially improved terms more reflective of the current nickel and cobalt prices. The current shortage of nickel stocks world wide and elevated nickel prices suggest that there will be a high level of interest in the Weda Bay production.
- The Company is no longer constrained by the agreements with OMG and can now better control its own future including the making of share placements at appropriate price levels as and when required.
- The Company is now more attractive to major companies involved in, or interested in being part of, the nickel cobalt industry either by joint venture or acquisition.
- Weda Bay can now proceed to a Bankable Feasibility Study either with a major partner, a consortium of parties or by raising finance to complete the study in its own right.
In light of these developments the Company is now in discussions with a number of parties that have expressed an interest in the Halmahera Nickel Cobalt Project.
Weda Bay Minerals Inc (WDA) is an exploration and development company focused on the world-class nickel and cobalt laterite project on the island of Halmahera in Indonesia. The project resources are 155 million tonnes grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni.
The Company has completed an independent Pre Feasibility Study, which concludes that the Halmahera project is highly viable.(end of release)