Thursday, 17 November 2011

Pure Nickel Receives $3.5 M Settlement

Pure Nickel
Basic Shares: 67.8 million
Fully Diluted: 75.5

The holiday season arrived a little early for Pure Nickel and its shareholders as the company reached a settlement on its interests in the Milford copper property in Utah.

The long standing litigation was resolved with a new U.S. group with significant financial backing that came into the fray a couple of years ago. It ultimately came to terms with creditors that held millions of dollars in paper on the copper project and mill but had to ensure that Pure Nickel was not left out in the cold as it held interests in much of the project.

Pure Nickel has already received the first million dollars of a total of US$3.5 million. Another million is to arrive in 180 days and the balance at the 12 month mark. It also has a 1% Net Smelter Royalty (NSR) capped at US$8 million.

What should make shareholders happy is the company's financial position. It has just over $3 million in cash and with the other $2.5 million, NIC is covered for its current 2012 plans. While budgets can change subject to opportunities, at this point the company doesn't have to think about going to the equity markets, which have been extremely cruel to the junior mining sector through most of 2011.

To read the news release click here.