Blackstone Acquires 100% Interest in Norway Projects From Xstrata Nickel
July 20 2010 - 9:51AM
Marketwired
Blackstone Ventures Inc. (TSX VENTURE: BLV) announces that
Blackstone and Xstrata Nickel have renegotiated the terms under
which Blackstone will acquire 100% of the shares in Sulfidmalm A/S.
Under the original terms of the agreement Blackstone would have
acquired 100% of the shares in Sulfidmalm and hence 100% of
Sulfidmalm's interest in all its Norway nickel exploration projects
for a total cumulative payment of US$15.5 million to be completed
no later than December 31, 2012 of which a total of US$6.5 has
already been paid to Xstrata Nickel. The Norway nickel projects
include the Stormyra, Dalen and Ertelien Nickel-Copper
Deposits.
Under the amended terms, Blackstone will, subject to regulatory
approval, issue Xstrata Nickel a total of 6 million (6,000,000)
Warrants. Each Warrant shall entitle Xstrata Nickel to subscribe
for one common share of the company at an exercise price of $0.50
at any time prior to the day that is 24 months from the signing of
this amendment, In exchange for the issuance of these Warrants,
Blackstone will have completed the acquisition of all the shares of
Sulfidmalm held by Xstrata.
In accordance with the amended agreement, Blackstone will
subsequently make further production related payments to Xstrata
Nickel of up to US$9,000,000 contingent on the occurrence of
certain events relating to the Properties as follows:
-- payment of $US3,000,000 after approval of the board of directors of
Sulfidmalm to proceed with development of a project on the Properties;
-- payment of $US3,000,000 within one year of the commencement of
Commercial Production on the Properties; and
-- payment of $US3,000,000 within two years of the commencement of
Commercial Production on the Properties.
As reported in a news release dated January 13, 2009, Blackstone
has received NI43-101 compliant mineral resource estimates from
Reddick Consulting Inc. on its Ertelien, Stormyra and Dalen
Nickel-Copper Deposits in Norway.
Highlights of these resource estimates include:
-- Total Inferred Resources of 9.1 million tonnes with 103.3 million lbs of
contained nickel and 65.2 million lbs of contained copper
-- Indicated Resources of 4.6 million tonnes with 30.0 million lbs of
contained nickel and 12.1 million lbs of contained copper.
-- Significant room for expanding the Dalen deposit along a 2 kilometre
trend
-- Down plunge potential to expand Ertelien deposit
These resource calculations are the first ever completed on any
of these projects and confirm that there is considerable nickel
potential in Norway. The resource calculations completed for the
Stormyra, Dalen and Ertelien Deposits compliment additional
nickel-copper resources which have been outlined by the company at
its Sweden properties. As reported in a news release dated May 5,
2009, Blackstone received NI43-101 compliant mineral resource
estimates from Reddick Consulting Inc. on its Ror (Rormyrberget),
Lainejaur and Lappvattnet nickel-copper sulphide deposits in
Sweden.
Highlights of the Swedish resource estimates include:
-- Total Inferred Resources of 8.2 million tonnes with 90.6 million lbs of
contained nickel and 19.6 million lbs of contained copper
-- Significant potential to upgrade resources at the Ror deposit
-- Potential to expand resources at depth at Lainejaur and Lappvattnet
Collectively in Norway and Sweden the company now has 194
million lbs of nickel and 85 million lbs of copper in the inferred
resource category and 30 million lbs of nickel and 12 million lbs
of copper in indicated resources. All of the company's projects
with new nickel-copper resources are well positioned with respect
to infrastructure, including power, transportation and workforce.
Blackstone will be reviewing the potential of upgrading these
resources and developing a preliminary assessment to evaluate the
economics of future mining once metal prices improve.
On behalf of Blackstone Ventures Inc.
Dean MacEachern, President
Caution Regarding Forward-Looking Statements - This news release
contains certain forward-looking statements, including statements
regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to
update any forward looking statements, oral or written, made by
itself or on its behalf.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Blackstone Ventures Inc. Investor Relations
604-687-3929 www.blv.ca