Thursday, 2 August 2007

Pure Nickel Closes Financing + Xstrata Property Acquisition + Adds New Board Member

Pure Nickel (NIC - TSX V) has moved into the ranks as one of the top holders of a premier package of North American nickel exploration properties with the closing of the acquisition of ten projects from Xstrata (green dots on map).

Xstrata, following its purchase of Falconbridge, is solely focused on cash flow projects. NIC seized the opportunity to secure these high potential projects, which carried a price tag of $15.25 million amongst other items that can be viewed in the news release (click here).

Pure Nickel is well funded as it had $8 million in the bank prior to the just completed $27.5 million financing. The Company has $17 million in cash.

NIC's work program budget for this year is $8 million. Half of those funds are committed to the MAN project in Alaska (announced Aug.1st), which NIC has labelled as "a potentially world class deposit".

The announcement should bring comfort to those who have have been watching the story as it took a wee bit longer than anticipated to get through the regulatory approvals in regards to the closing of the financing and the acquisition from Xstrata.

What should be kept in mind is that Pure Nickel is a little more than a year old as a company and its accomplishments are many in a very short period of time. We expect that through the fall and winter NIC will be in a position to issue a fairly regular stream of news on the results of its various work and drilling programs.

Developments continue at the Company at a rapid pace as it has also added Constantine Salamis to its Board of Directors.

A summary of his bio reads as such: Mr. Salamis, a mining engineer, has been involved in numerous mineral exploration and production companies throughout his 50 year career including Falconbridge Nickel, Inco Ltd., SOQUEM and Manicouagan Minerals, a public company he founded in 2004. In addition to Mr. Salamis’ North American experience, overseas he has completed geological evaluation assignments for international agencies including the World Bank and the United Nations.