Nickel junior ends BHP offtake deal to facilitate Chinese finance

European Nickel, which is developing the Caldag nickel project in Turkey, has ended its prior offtake deal with BHP Billiton in favour of one with China's JXTC, which will also help it facilitate completion of debt finance.

LONDON (REUTERS) -

European Nickel (ENK.L: Quote) said on Wednesday it has ended a key off-take agreement with BHP Billiton (BHP.AX: Quote) (BLT.L: Quote) as part of a switch which it says will facilitate getting financing from a Chinese partner.

European Nickel says it intends to enter into a new sales agreement, at its flagship Caldag mine in Turkey, with China's Jiangxi Rare Earth and Rare Metals Tungsten Group Company [JRERM.UL] (JXTC).

It said in a statement that it had increased the amount it wanted to sell to JXTC from 50 percent to 100 percent by mutual agreement, to facilitate the 100 percent debt financing of the project from a Chinese partner.

In February the company said it had signed a $350 million debt facility with two Chinese partners to fund the Caldag mine, enabling the project to be funded through to production.