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Funding for European Nickel

Article Date:  Feb 19 2009

European Nickel has signed a $350 million (£250 million) agreement for its Caldag project
in Turkey.

Under the agreement with AIM-quoted European’s Chinese partners, Jiangxi Rare Earth and Rare Metals Tungsten Group (JXTC) and China Tianchen Engineering Corporation,  will arrange a credit  insurance guarantee policy for project backers. JXTC has also undertaken to lead the arrangement of a credit guarantee insurance policy from a consortium of Chinese banks.

JXTC has also undertaken to buy 20 per cent of the Caldag project for £14.5 million and to buy half of its nickel output. At 10.25p, down from 63p nearly two years ago, the shares have speculative potential.

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