FNI Amends Lockerby Ore Processing Agreement
TORONTO, ONTARIO--(Marketwired - Sep 27, 2013) - First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) announces that it has entered into an amendment to its ore processing agreement (the "Agreement") with Glencore Canada Corporation ("Glencore"). The Agreement, originally entered into with Falconbridge Ltd. in 2005, provides for the sale by FNI of all of the ore from its Lockerby Mine in the Sudbury Basin to Glencore. The changes to the agreement provide benefits to both parties, including simplification of the terms, structure and timing of settlement.
Mr. Thomas Boehlert, President and CEO of First Nickel said, "We are very pleased to have been able to amend and simplify our off-take agreement with Glencore through working collaboratively with our partner to craft an arrangement that benefits both companies. The amended agreement provides FNI with greater certainty regarding its cash flow forecast and provides Glencore with increased operating flexibility."
The conversion to a GMV contract will result in changes to the methodology for reporting of payable metals and unit cash costs. Further detail regarding the changes in methodology will be provided in the Company's quarterly disclosure starting in the third quarter of 2013.
About FNI
FNI is a Canadian mining and exploration Company. The Company's mission is to be the most dynamic North American emerging base metal mining Company in which to work and invest and to be respected in the communities in which we operate. FNI operates its Lockerby Mine in the Sudbury Basin in northern Ontario. The Lockerby Mine is expected to produce at a rate of approximately 10 million pounds of payable nickel and approximately 7 million pounds of payable copper annually, providing a strong base from which to grow the Company. In addition to the Lockerby Mine, the Company owns exploration properties in the Sudbury Basin, the Timmins region of northern Ontario, and the Belmont region of Eastern Ontario. FNI's shares are traded on the TSX under the symbol FNI.
Forward-Looking Statements
Certain statements contained in this news release may contain forward-looking information about FNI. Forward-looking information can often be identified by the use of forward-looking terminology such as "anticipate", "believe", "continue", "estimate", "expect", "goal", "intend", "is confident", "target", "potential", "objective", "may", "plan" or "will" or the negative thereof or variations thereon or similar terminology. Forward-looking information may include, but is not limited to: the continued operation of the Lockerby Mine; future financial or operating performance of the Company and its projects; the future price of metals; the long term supply and demand for nickel; continuation of exploration activities; mineral reserve and mineral resource estimates; the realization of mineral resource estimates; costs of production and key supplies; capital, operating and exploration expenditures; forecasts of sales and production; costs and timing of the development of new and existing deposits; costs and timing of future exploration; the requirements for additional capital; government regulation of mining operations; environmental risks, reclamation expenses and/or title disputes or claims.
By its nature, forward-looking information is based on certain factors and assumptions which involve known and unknown risks, uncertainties and other factors which may cause the actual results, realization of mineral resources, performance or achievements of the Company, financial position or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Accordingly, actual events may differ materially from those implied by any forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speak only as of the date the statements were made and readers are also advised to consider such forward-looking information while considering the risk factors set forth in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release. The Company disclaims any intention or obligation to publicly update or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.