Two leading nickel miners have signed a joint agreement to maximise one of Australia’s largest high grade nickel resources in WA.
Western Areas and Kagara have signed a Heads of Agreement allowing the Lounge Lizard nickel deposit in WA to be accessed from the Flying Fox mine decline.
The agreement is expected to deliver major benefits to both parties by potentially increasing mineral resources at both sites.
Western Areas will receive capital cost refunds for developing the Flying Fox decline, including an initial non-refundable payment of $20 million from Kagara.
The agreement will also enable Kagara to gain early nickel production at its Lounge Lizard deposit by accessing the Flying Fox decline.
Production from Lounge Lizard is not expected to have any significant impact on the rate of production from Flying Fox.
Both companies are now planning substantial surface and underground drilling programs to identify improvements to existing programs.