AN in principle agreement has been reached between Niagara Mining and WMC Resources for the purchase of the Windarra nickel assets.
Niagara has made a $250,000 deposit to secure an exclusive period to negotiate and complete the sale and purchase agreement.
Windarra is owned by WMC Resources and is covered by the Poseidon Nickel Agreement Act 1971 but the mine is not in operation.
The agreement with WMC, subject to approval by the Minister for State Development, will have the State Agreement transferred to Niagara, which will allow it to conduct exploration and review drilling data held by WMC.
State Development Minister Clive Brown has already given his support to the deal, saying the Government was prepared to facilitate a transfer of ownership of Windarra, providing a final agreement can be reached between WMC and Niagara.
If the deal goes ahead, Niagara will pay WMC $7 million plus another $1 million after the production of 10,000 tonnes of nickel metal equivalent from sulphide ore.
