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Atok-Big Wedge sues Intex over sale of Mindoro nickel mine

November 19, 2010 - 13:07 GMT Location: London

KEYWORDS: mindoro , nikel , atok , intex , lybica , serverstal

Mining company Atok-Big Wedge Co is suing Norway’s Intex Resources for allegedly reneging on a deal for the sale of its Mindoro nickel mine project in the Philippines

Atok claims that Intex ceo Erlend Grimstad and Atok chairman Roberto Ongpin agreed on the sale of 100% of the 9,720 hectare mine on October 15 2010, according to media reports; a claim that Intex rejects. Atok "wrongfully claims that an agreement has been reached through the failed negotiations that have previously taken place", Intex said on November 10, after being informed about the court proceedings on November 9. The Mindoro nickel project has the potential to produce more than 2 million tonnes of nickel at a discount rate of 8.6% and a long-term nickel price of $8.25 per lb. Mindoro’s estimated net value is around $3.1 billion, Intex claims on its website. Atok’s offer for the mine comprised $10 million in cash and 300 million new Atok shares, worth $1.50 each. Atok claims that when the two companies came to document the deal, Intex refused to sign the agreement,...

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