Poseidon Nickel (ASX:POS) has announced it has entered into an agreement with Caeneus whereby the latter is allowed to mine the underground resources of the Silver Swan zone, which is located on the Black Swan tenements. Poseidon elected not to mine Silver Swan as the underground mineralization there is quite complex.
So it did make sense to find someone who’s willing to take on the risk of geological complex structures at Silver Swan and seems to have found Caeneus as its partner. Caeneus will pay A$1.5M up front and will assume the costs associated with putting Silver Swan on care and maintenance, estimated at A$300,000 per month.
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Disclosure: The author holds no position in Poseidon Nickel. Please see our disclaimer for current positions.
