Hunter Dickinson to invest up to $60 million in European Nickel

Shares in European Nickel (LON:ENK) soared more 30 percent in early trading as it brought on board a heavyweight investor that will take a US$60 million stake in the miner.

Canada’s Hunter Dickinson (HDI) will buy stock in two tranches. It will acquire US$5 million-worth shares in a private placement immediately, followed by the major investment in the final quarter of 2010.

This will coincide with successful completion of talks with a consortium of banks to provide US$300 million of finance for the company’s Caldag nickel project in Turkey.

The announcement is a major positive on two levels.

First it is major feather in the cap for deputy chairman Simon Purkiss and his team to have signed up Hunter Dickenson, a world renowned mining investment firm.

But perhaps more interesting are the terms on which the deal is being done, with shares placed at well above their current market value.

The initial stake sale will be completed at 32p a share – which compares to a Friday closing price of 17p – while the second tranche is being done at 44p.

Purkiss said: ‘I am delighted to welcome Hunter Dickinson as a strategic partner and new shareholder.
‘HDI has an exceptional track record in advancing

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