It is reported that Toledo, the Philippines focused nickel miner, is to sell its Ipilan JV to the Chinese firm Jinchuan, a leading producer of refined nickel.

Toledo said that the firm's 40% stake in the mining operation, the rest of which is owned by Philippine partners, should net it USD 17.4 million, with the tax payable expected to be modest. It added that 90% of the transaction price is to be paid on completion with a 10% retention to be settled sixty days later.

Mr Reg Eccles chairman of Toledo said that over the last 12 months his firm had received a mix of approaches from local companies either willing to invest in the mine and sell the product in return for a profit share or buy out Teledo's share. He added that "The firm has concluded that none of the indicative offers are better than that of Jinchuan. Moreover, our financial commitment to Ipilan is open ended and we have no certainty as to when Ipilan can be mined."

The firm added that proceeds from the transaction, when added to current cash balances of USD 5.6 million, would put Toledo in a very healthy financial position.

The company said that this would allow the firm to support expansion and improvements at and around its Berong mine, as well as wider growth, without having to raise further funds from shareholders. Investors cheered the news, pushing the share price up 9% in morning trading.

(Sourced from www.sharecast.com)