Western Areas Limited
(ASX:WSA) is set to acquire the Cosmos Nickel Complex from Glencore’s Xtrata for $24.5 million.
The nickel producer says the deal offers additional exploration upside and a potential second mining operation.
The company says the nickel belt is high grade with a 24 month exploration program ready to go.
Managing Director Dan Lougher says the deal is consistent with the company’s growth strategy and that they’ve bought the project at the correct stage of the current commodity cycle.
Western Areas reported a net profit of $23.5 million in the first half of the 2015 financial year.
