Mindoro Resources says it has received strong interest from potential partners for its Agata Nickel Project on the Surigao Peninsula of Mindanao. The company announced in November 2011 it would seek a strategic partner to pursue and finance the project after scoping and feasibility studies confirmed it could host a low-cost high-value mine with a 20-year operating life.
Mindoro has also raised an additional Can$0.18 million through a second private placement of shares to qualified investors, bringing its total placement funds to Can$1.4 million to put into a two-stage development strategy.
Mindoro’s president Jon Dugdale says, “We are very pleased to have raised a combined Can$1.4 million under the current private placement in difficult market conditions. We continue to work with our major shareholders and other interested investors to raise additional funds targeted under this placement.”
A number of parties, primarily from Asia, have voiced strong interest in the project and are currently conducting assessments before finalizing their preliminary proposals. Mindoro is working with its financial advisor to advance discussions and negotiations during the first quarter of 2012.
“We are encouraged by the strong level of interest being expressed in financing the development of the Agata project. This highlights the strategic advantages that the project has, including location on a protected coast-line, no forest or significant population on the resource and outstanding metallurgical characteristics for both thermal and hydrometallurgical processing,” says John Dugdale.
Agata is situated along a nickel laterite belt where there is a measured resource of 42.7 million tonnes with the potential to become a world-class resource base, and a major supplier of nickel concentrate to China’s rapidly growing stainless steel market. Mindoro has been exploring the Surigao district since 1997 and owns many promising nickel, gold and porphyry copper-gold prospects at varying stages of evaluation.