European Nickel appoints Polo Resources MD Neil Herbert as non-exec director

European Nickel (LON, PLUS, ASX: ENK) has appointed Neil Herbert as an independent non-executive director, to aid the company as it progresses towards becoming a mid-tier nickel laterite producer. Herbert is the executive co-chairman and managing director of Polo Resources (LON, TSX: POL).
"I am delighted to welcome Neil to the Board. I believe his business acumen and extensive experience working for listed companies will bolster the board and provide invaluable advice as we progress European Nickel towards our ultimate aim of being a mid-tier nickel laterite producer", European Nickel deputy executive chairman Simon Purkiss stated.

The company highlighted that Herbert has over 20 years experience in finance, and he has been involved in the management of mining and exploration companies for over 12 years. Herbert has held a number of senior executive roles, including Finance Director for UraMin Inc, until its acquisition by Areva NC for US$2.5 billion and Group Financial Controller for Antofagasta Plc. 

The company is currently finalising a merger with Rusina Mining (ASX:RML; LON:RMLA). Back in February, European Nickel and Rusina Mining signed the merger deal to form a ‘new and significant nickel development company’. European Nickel is acquiring Rusina through an equity-based transaction which, in February, valued Rusina at approximately £18.1 million and is capped at £27.1 million.
The combined group will have a total attributable resource base of 1.35 Mt (million tonnes) of contained nickel, with forecast production of 45,000 tonnes per annum from its two projects, Çaldağ and Acoje. Earlier this month, European Nickel published an interim statement, in which it said the first half marked “progress on all fronts” after agreeing the merger with Rusina and working to secure sufficient funds to complete project financing of the Caldag nickel project in Turkey and recommence work on the feasibility study at the Acoje nickel propject in the Philippines.

With associated financing deals, will provide the company with £6.7 million of additional funds, which, along with Rusina’s cash resources of US$1.6 million, should be enough to complete the Caldag financing. European Nickel also reported that its discussions with Western banks had progressed significantly, resulting in joint mandate letters with Societe Generale and UniCredit, which will act as initial mandated lead arrangers for the Caldag project financing, targeting completion of the debt funding by the end of the year.

The securing of the Western bank finance allowed the company to lapse the option granted to JXTC to take a 20% equity participation in Caldag for a US$20 million investment and the purchase of 100% of the project’s production, with European Nickel saying that the price was no longer appropriate given the project’s total value of US$285 million.

The company stated that the sale of Caldag’s production to JXTC was still a possibility, though it was also in negotiations with other parties.