Australian nickel producer Mincor Resources has consolidated its already substantial interests in the Kambalda nickel district of Western Australia by purchasing the remaining 30% of the Carnilya Hill project from joint venture partner, View Resources, for A$22.5 million.

A major extension to the Carnilya Hill ore body was discovered by Mincor during 2006 and development of a 15,000 t/month nickel operation started in July 2007. First ore will be produced on schedule during January 2008

The ore body contains an initial nickel reserve of 14,000 t, with substantial exploration upside.

“We are delighted at this opportunity to extend our position at Carnilya Hill”, Managing Director David Moore said. “The project will generate its first revenue from the end of this month, and we expect this acquisition to provide an excellent financial return on the cash outlay, based on current reserves.

“In addition, the acquisition secures for Mincor 100% of the future exploration upside, which we rate very highly.”

Moore added that the acquisition was “highly synerginistic”, as the additional 30% of Carnilya’s production that will accrue to Mincor will require no extra manpower or management resources.

Mincor will pay View a royalty of 1%, capped at a cumulative value of A$2.5 million, on nickel mined after the depletion of the currently known reserves. The royalty will only be payable if the nickel price is greater than $25,000/t.

In addition to the above terms, View has agreed to grant Mincor a fully-vested 70% interest in the nickel rights over all of View’s Bronzewing tenements. In return Mincor will sole-fund the first A$1 million of exploration expenditure on the tenements.

“We believe the nickel potential of the Bronzewing area has never been properly evaluated but the potential is very real, with substantial exposures of prospective ultramafic rock,” Moore said.

“Together with our recent acquisition of the Bluebush Line, this consolidation of the Carnilya Hill project and the addition of the Bronzewing nickel rights adds substantially to Mincor’s nickel presence in Kambalda and WA generally.”

Mincor owns and operates six nickel mines in the Kambalda nickel district and is developing two more, including Carnilya Hill.