Adelaide, Nov 8, 2006 AEST (ABN Newswire) - The Directors of Discovery Nickel Limited (ASX: DNL) are pleased to announce that terms have been agreed with Stellar Resources Limited for the sale of the Dundas Exploration Licence, EL 21/2004, situated in Western Tasmania.
Highlights
- Dundas EL 21/2004 to be sold to a wholly owned subsidiary of Stellar Resources Limited
- Consideration for EL 21/2004 is 300,000 Stellar Resources Shares (currently A$0.32/share).
- DNL will retain a 2% Net Smelter Return royalty
Australian Exploration Portfolio
Due to initial success with the on-going drill program on DNL's 100% owned Maun Copper Project in NW Botswana, the Company has decided to joint venture or sell a number of its Australian exploration licences. This rationalisation of the Australian exploration portfolio will allow DNL to focus on its core assets in Botswana, diverting greater resources to the development of these advanced projects, while decreasing the holding costs of DNL's Australian tenements. The rationalisation of DNL's Australian exploration portfolio will assist with the fast tracking of the assessment of the inferred copper resources on the Maun Copper Project.
Dundas EL 21/2004
The Dundas exploration licence, EL 21/2004, is an area of 12km 2 covering a discrete magnetic anomaly with strong similarities to the magnetic anomaly associated with the nickel mineralisation at the Avebury nickel deposit west of Zeehan in Western Tasmania. Stellar Resources will issue to DNL 300,000 Stellar shares in consideration for the purchase of EL 21/2004 and will grant DNL a 2% net smelter return royalty over any production sourced from EL 21/2004.
Commenting on the sale of the Dundas EL Discovery's Managing Director, Mr Jeremy Read, said that DNL was looking to capture value from its Australian exploration portfolio, at a time of historically high commodity prices, while retaining exposure to exploration success through retained net smelter return royalties.
"The Dundas tenement covers a quality Avebury nickel target and we are pleased to agree with Stellar the terms for the sale of the tenement," Mr Read said.
"We will continue to look to capture value from our Australian assets allowing us to increase our focus on our advanced Botswana projects" he said. The sale of EL 21/2004 is subject to the approval of the Tasmania Mines Minister.
Further information about DNL's Australian exploration projects can be found at www.discoverynickel.com.au.
Contact
Peter Gill
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: 08 8234 9555
Fax: 08 8234 9566
Mb: 0417 784 059
peter@fieldpr.com.au
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