Weda Bay loses funding backer for Halmahera nickel-cobalt project

Toronto-based junior nickel explorer Weda Bay Minerals Inc. said Tuesday it had lost one source of funding for its Weda Bay nickel-cobalt project in Halmahera Island.

Weday Bay said that Cleveland-based specialty chemicals producer the OM Group Inc or its subsidiary OMG Kokkola Chemicals Holding B.V. had advised the Company that it would not be providing any further funding for the Weda Bay Halmahera nickel/cobalt project.

Weda Bay did not disclose any further details but said it will further discuss this advice with OMG management and will continue discussions with other parties who have expressed an interest to assist with ongoing funding.

OMG is Weda Bay?s strategic partner and had signed long-term off-take agreement to purchase all the first development phase production for treatment at its nickel and cobalt refinery at Harjavalta, Finland.

Weda Bay Minerals Inc through its subsidiary PT Weda Bay Nickel owns 90 percent of cobalt laterite project on the island of Halmahera while Aneka Tambang holds the remaining 10 percent stake.

Resources at Weda Bay project is estimated at 215 million dry tonnes of 1.35 percent nickel and 0.11 percent cobalt. Potential exists for over 500 million tonnes to be delineated. A Pre-Feasibility Study completed showing the project to be economically robust. (alex)