Poseidon Nickel's (ASX:POS) shares have jumped 14.8% to $0.155 in early morning trade, with close to 3 million shares changing hands in just the first hour.
Yesterday (Wednesday 9th July 2014) David Singleton, managing director for Poseidon Nickel, delivered the "Australia’s ‘New’ Nickel" presentation to a full-house of investors in Sydney.
ACCESS HERE: Australia’s ‘New’ Nickel
Singleton highlighted the potential of the company's Windarra Nickel Mine, along with this week's acquisition of the Black Swan Processing Plant & Mine, and also the current Nickel Market Boom developing.
Black Swan acquisition details
On Monday Poseidon Nickel made a game changing pathway-to-production acquisition of the Black Swan processing plant from Norilsk Nickel that removes the $300 million Capex bogy from the equation.
This acquisition is one of those rare prizes that comes along, and it fits snugly with Poseidon's current Windarra project – offering near term production capability.
As well as the ability to process large nickel inventory on site and the increase in throughput capacity.
The acquisition price including the nickel processing plant from Norilsk Nickel was $1.5 million.
The company has paid an initial deposit of $150,000 with the remaining amount due when certain conditions precedent are met.
It will also assume existing and ongoing environmental obligations.
Black Swan includes a processing plant, which has a proven throughput capacity of 2,150,000 tonnes per annum, and the Black Swan open pit mine containing 185,800 tonnes nickel in ore.
Notably, the plant will be able to process Windarra ores, removing the need for Poseidon to invest up to $300 million in capex for a new processing plant.