27th January 2017
Company Announcements Office ASX Limited
Level 6
20 Bridge Street
SYDNEY NSW 2000
Amended AnnouncementPlease find attached an amended announcement entitled "Poseidon Sells Windarra Gold Rights to GTI Resources."
The previous version of this announcement lodged today included the line "Upon exercising the option on or before 28 February 2017, GTI will pay Poseidon A$975,000." Please note the date should have read 28 March 2017.
Poseidon Nickel Limited confirms that there has been no breach of ASX Listing Rules 3.19A and/or 3.19B.
Gareth Jones Company SecretaryP OS E I DON NI C KE L LIM ITE D Unit 8 Churchill Court 331-335 Hay Street Subiaco WA 6008
PO Box 190 West Perth WA 6872 T +618 6167 6660 F +618 6167 6649 www.poseidon-nickel.com.au ABN 60 060 525 206
27th January 2017
POSEIDON SELLS WINDARRA GOLD RIGHTS TO GTI RESOURCESHighlights
- Poseidon signs an Option Deed with GTI Resources to sell the Windarra gold rights for A$3M
- A 1% gold royalty to apply on any new gold discovery on the Windarra tenements
- New gold discoveries will be subject to a joint venture agreement for 20% of the project
- GTI Resources has circa 6 years to process the gold tailings
- Poseidon is focussed on terminating the Poseidon Nickel Agreement Act 1971
- GTI Resources will pay a further A$0.5M into a trust fund held by Poseidon as an environmental bond
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Exploration to be progressed on the Abi Rose nickel discovery at Lake Johnston
Poseidon Nickel Limited (Poseidon) is pleased to announce that it has agreed to sell the gold rights on its Windarra tenements to GTI Resources Limited (GTI) for A$3.0M. Poseidon will transfer the Windarra Gold Rights in exchange for the following:
A$25,000 initial cash payment for a period of due diligence secured under an Option Deed;
Upon exercising the option on or before 28 March 2017, GTI will pay Poseidon A$975,000;
A further A$1,000,000 payment on or before 28 June 2017;
A final payment of A$1,000,000 upon the termination of the Poseidon Nickel Agreement Act 1971 (State Act);
Establishing a trust fund of AUS$0.5M within 18 months of concluding the agreement to be held as an environmental bond by Poseidon;
Pay a 1% gold royalty on any new gold discovery on the Windarra leases;
Any new gold discovery will be subject to a joint venture agreement, Poseidon will be free carried to a bankable feasibility study level and own 20% of the project;
POSEI DON NI C KEL LI M I TED Unit 8 Churchill Court 331-335 Hay Street Subiaco WA 6008
PO Box 190 West Perth WA 6872 T +618 6167 6600 F +618 6167 6649 www.poseidon-nickel.com.au ABN 60 060 525 206
Poseidon will 100% own any new nickel deposit discovered by GTI on the Windarra leases.
The Company Chairman Mr Chris Indermaur said, "As no work can proceed on the treatment of gold tailings at Windarra until the State Act is terminated, we believe this agreement represents fair value as it provides a cash injection in a soft nickel market. Furthermore Poseidon will benefit from any gold or nickel discovery without being required to fund ongoing exploration or project development at Windarra."
The commencement of the lease is conditional upon the termination of the State Act and payment of the consideration. The Company offers no warranties or guarantees on the timing of the termination however, Poseidon believe the State Act is likely to be terminated during 2017 with the support of the Department of State Development (DSD) and the Department of Mines and Petroleum (DMP). Termination of the State Act will enable the gold tailings to be processed by GTI under the Western Australian Mines Act.
Poseidon is progressing the termination of the State Act. As previously advised to the market the State Act is an Act of the Western Australian Parliament and therefore the termination requires approval from both houses of Parliament. As 2017 is an election year it is likely the termination will be concluded late in the year.
The Company will benefit from exploration to be conducted by GTI on the Windarra tenements. Any new gold discovery on the Windarra mining leases will be subject to a joint venture agreement and Poseidon will own 20% of any new gold discovery and 100% of any new nickel discovery.
Poseidon will continue to focus on developing its significant nickel resources within the 3 nickel regions held by the Company. After successfully securing the Exploration Incentive Scheme (EIS) grant from by the DMP, Poseidon plan to progress further drilling at the Company's Abi Rose high-grade nickel discovery, located within the Lake Johnston Project, 190km south-west of Kalgoorlie in Western Australia.
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CORPORATE DIRECTORY Principal Office
Unit 8, Churchill Court
Director / Senior Management 331-335 Hay StreetChris Indermaur Non-Executive Chairman SUBIACO WA 6008
David Singleton Non-Executive Director P: 61 8 6167 6600
Geoff Brayshaw Non-Executive Director F: 61 8 6167 6649 Robert Dennis Non-Executive Director
Gareth Jones Company Secretary Registered Office
Level 2, Spectrum
100 Railway Road
Corporate Enquiries SUBIACO WA 6008P: 61 8 9367 8133
P: 61 8 6167 6600 F: 61 8 9367 8812
F: 61 8 6167 6649
E: admin@poseidon-nickel.com.au
Media EnquiriesP: 61 8 6167 6600
F: 61 8 6167 6649
Shareholder Enquiries E: admin@poseidon-nickel.com.au Enquiries concerning shareholdings should be addressed to:
Home ExchangeComputershare Investor Services The Company's shares are listed
GPO Box D182, Perth WA 6840 on the Australian Securities Exchange
P: 61 8 9323 2000 and the home exchange is Perth
ASX code: POS
Poseidon Nickel Limited published this content on 27 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 January 2017 01:49:01 UTC.
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