About Eagle Nickel
Eagle Nickel Limited is an exploration company that initially targeted nickel but later expanded to into lead, zinc, lithium and phosphate exploration. Following a detailed review of the tenement portfolio including the surrender of tenure where further work was not warranted, the company has retained the Guano and Phosphate Projects in Western Australia.
In response to ongoing funding pressure, Eagle Nickel Limited entered into a share placement agreement with Shanghai Sky Chem Industrial Co. Ltd (“Shanghai Sky”) whereby Shanghai Sky agreed to take a placement of shares equivalent to 51% of total issued capital in Eagle Nickel Ltd at A$0.02 per share subject to shareholder and regulatory approvals. The share placement will generate a total cash investment of A$1.3 million and will be executed in two tranches. Funds for the first tranche representing 15% of the total issued capital I Eagle Nickel has been received and is being held in trust.
A Notice of Meeting and supporting Explanation Memorandum for the required General Meeting (GM) to approve the second tranche and related resolutions was lodged with the Australian Securities Exchange on 29 February 2012. The GM is scheduled for 30 March 2012.
The Board of Eagle Nickel Ltd is unanimous in their view that the placement of shares to Shanghai Sky represents the best possible outcome for the company. The Directors intend to vote the shares they own in the company in favour of the placement and other proposed resolutions.
(For further information in relation to the Shanghai Sky deal, please refer to ENL Quarterly Activities Report dated 31 January 2012)