TORONTO, June 30 /CNW/ - Gladstone Pacific Nickel Ltd today announces
that China Metallurgical (Group) Corporation ("MCC") will not be renewing its
Memorandum of Understanding ("MoU"), entered into on 30th January 2008, for
development of the Gladstone Nickel Project (the "Project"). MCC has advised
that it is slowing down its activity on the Project due to current nickel
Mr Downie, CEO of the Company said, "The global financial crisis has
resulted in a slowdown in the development of resource projects worldwide.
This may result in up to a two year delay on our existing plans for the
Project. GPNL has developed a strong relationship with MCC which the Company
will continue to progress."
The Company is poised to take advantage of the next cycle in the nickel
market. The Company has received all the necessary environmental approvals for
the Project, land acquisition agreements and native title clearances. The
Gladstone Nickel Project remains one of the most advanced projects in the
pipeline of green field nickel projects.
GPNL has gained key approvals from the Queensland Government and will
seek to extend the Gladstone land purchase and environmental agreements to
reflect the potential two year delay to the Project.
The Company is undertaking a review of the Project scope with a view to
lowering the capital hurdle while continuing to leverage off the
infrastructure, both current and planned, in Gladstone.
The Company currently has more than A$10 million in cash reserves. The
Board will continue to evaluate various strategic options with a view to
maximizing the asset base of the Company.
For further information:
For further information: John Downie, CEO - Gladstone Pacific Nickel
Ltd, Tel: +61 (0) 7 3231 7100; Fiona Owen - Grant Thornton UK LLP, Tel: +44
207 383 5100; John Prior - Arbuthnot Securities, Tel: +44 207 012 2000, Email: