Proto teams with Canadian group in Tasmania

Canadian-based Metals Finance Corporation has increased its stake in the Australian....

  Canadian-based Metals Finance Corporation has increased its stake in the Australian resources sector with a joint venture to consider the development of Proto Resources & Investments’ Barnes Hill nickel project in Tasmania.Proto has signed a 50:50 joint venture agreement with Metals Finance Corporation, under which Metals Finance will fund a pre-feasibility study and any development of a mine and processing facility that flows from a positive evaluation of the project.The Barnes Hill project, located 30km north of Launceston, contains a 12.1 million tonne, JORC compliant Indicated resource of 0.83% nickel and 0.07% cobalt – equating to 120,000 tonnes of in-ground nickel metal and 840 tonnes of in-ground cobalt.Proto Chairman and Managing Director, Andrew Mortimer said the joint venture agreement was a significant step forward for the company and that it would deliver significant potential benefits for shareholders.“Proto firmly believes in the potential of the Barnes Hill project to deliver strong earnings for the joint venture and be profitable even at lower than present nickel prices, which are subject to fluctuation,” Mr Mortimer said.“Metals Finance thoroughly reviewed the Barnes Hill project before signing this agreement and is also confident of the project’s positive viability,” he said.The Proto-Metals Finance joint venture is targeting mid-2009 for the commencement of production at Barnes Hill.