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Additional Information
Market: AIM
Sector: General Mining - Nickel and Cobalt
EPIC: ENK
Latest Price: 9.38p  (-2.60% Descending)
52-week High: 21.25p
52-week Low: 8.88p
Market Cap: 24.59M
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ENK
www.enk.co.uk

ENK (AIM/PLUS/ASX: ENK) is an emerging mid-tier nickel laterite producer focused on growth with assets in Turkey, the Philippines and Albania.

ENK has developed an innovative, low cost, environmentally sensitive heap leach technology, which offers a competitive edge over conventional nickel laterite processing.

Full ENK profile here
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ENK should be in good negotiating position for Acoje financing, says Evo

16th Nov 2011, 10:55 am by Jamie Ashcroft Following the sale ENK's project in the Philippines is now funded through the definitive feasibility study

ENK (LON:ENK, ASX:ENK) should be in a good position when it comes to negotiating project finance options for the Acoje nickel project, according to Evolution Securities analyst Louise Collinge.

The analyst’s comments come after this morning’s news that ENK had received the outstanding US$34 million from the sale of the Caldag project.

Caldag had previously been a key focus for ENK, however delays in the permitting process led to the mothballing of the Turkish project.

The group announced the agreement to sell Caldag for US$40 million in mid-September and received a deposit of US$6 million shortly after.  

Now ENK is firmly focused on the Acoje project.  This mine development project is located in the Philippines and it is scheduled for first production in 2013.

“Today’s news is great for ENK which now has more than enough cash to complete its Acoje feasibility study,” Collinge said in a note to clients.

She added: “The cash which the group has received accounts for 10p of the current share price. We believe the stock looks significantly undervalued and reiterate our buy recommendation and 50p price target.”

Once up and running Acoje is expected to produce 24,500 tonnes of contained nickel and 930 tonnes of contained cobalt a year. At the moment the Acoje has a 10 year mine life however, according to ENK, the current resource drill programme should significantly lengthen the life of mine.

"The receipt of the additional US$34 million means that ENK now has over US$40 million cash on hand,” said managing director Rob Gregory.

“The company is fully funded for its ongoing BFS activities at its Acoje project in the Philippines and will have a significantly strengthened balance sheet ahead of negotiations with project finance providers. 

“This will enable the company to remain on track to commence production at Acoje in 2013."

ENK also announced today that it has kicked off a comprehensive drill programme on the Zambales Chromite Mining Corporation (ZCMC) tenement in the Philippines.

The ZCMC is located near the group’s flagship Acoje nickel mine development project.

The project currently has a JORC inferred resource of 23.5 million tonnes of nickel laterite ore at a grade of 1.18 per cent nickel and 0.05 per cent cobalt. ENK has a 40 per cent stake in the venture. 

With a 3,000 metre drill programme ENK and its partner Montemina Resources Corporation plans to upgrade the current JORC resource estimate.

It is expected that 255 holes will be drilled in the programme. 

ENK said it anticipates that the drilling program will continue until the end of the first quarter of next year.

 

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