Wednesday, 5 November 2008

Pure Nickel Hits Home Run With $40 Million Deal

Pure Nickel
Basic Shares: 67.8 million
Fully Diluted: 92.4

Pure Nickel Inc. defied the current market turmoil to hammer out a cornerstone agreement with ITOCHU Corporation of Japan that calls for the quick development of Pure Nickel’s wholly- owned Alaskan MAN property.

The agreement with the multi-billion-dollar Japanese conglomerate calls on ITOCHU to invest up to $40 million to further explore and develop Pure Nickel’s 720-square-kilometre property, which features nickel grades from outcroppings and grab samples running as high as 15%.
Pure Nickel’s property called ‘Man’, is located in the south west section of Alaska, roughly 400 kilometres northeast of Anchorage.

The ITOCHU Group has seven operating divisions and is looking to expand its exploration division into the platinum group metals. It has been focused on iron ore and aluminum and has been looking to diversify for some time. The company’s interest in the MAN property fits into its mandate of looking at long term projects with exceptional reward potential. ITOCHU currently has revenues surpassing $130 billion US and assets of $55 billion and is celebrating 150 years of operation.

ITOCHU will reimburse Pure Nickel for expenditures incurred this year at MAN and under the terms of the agreement ITOCHU is firmly committed to funding next year’s exploration activity to a combined maximum of $6.5 million for 2008 and 2009. On an ongoing basis, exploration activity will be funded through 2014 to a total of $40 million subject to ITOCHU exercising its option to continue at the end of 2009 and 2013.

The icing on the cake is that Pure Nickel will also earn an annual 10% management fee and will remain as operator. This 10% covers a large portion of the company’s overhead allowing it to sit on its large cash position.

See full news release……..

A deal of this magnitude validates Pure Nickels technical expertise and speaks volumes to the knowledgeable and experienced management team.

ITOCHU has annual revenues of $131 billion and net income of roughly $2.3 billion. This is a mammoth conglomerate and it got that way – since coming to life in 1858 – by working with partners on a long-term basis and only getting involved in projects with enormous upside. And to ensure it was getting involved with the right partner and the right project, it did exhaustive research. Some of Japan's best geologists have walked the MAN property before signing on the dotted line.