European Nickel plans IPO to fund mine development in Turkey

European Nickel, said on Tuesday it planned to list on London’s junior AIM market on March 29 with a market value of about 33 million pounds. Shares will be sold in the initial public offering at between 30 and 35 pence each.

European Nickel said it expects to produce 15,000 tonnes annually of nickel in concentrate by 2006, which it will sell on to refineries for production of nickel metal. It expects annual production to rise to 50,000 tonnes. It will be one of the lower cost producers with estimated cash cost of production of $2.10 per pound, it said.

The company part owns a high-grade nickel deposit at Caldag in western Turkey. It said the deposit is estimated to contain 430,000 tonnes of nickel with a value of over $6 billion.