European Nickel said that it has ended a key off take agreement with BHP Billiton as part of a switch which it says will facilitate getting financing from a Chinese partner.

European Nickel said that 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.

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

In February 2009, the company said that it had signed a USD 350 million debt facility with two Chinese partners to fund the Caldag mine, enabling the project to be funded through to production.

(Sourced from www.reuters.com)