Gladstone Pacific Nickel Limited - Signing of Revised Contracts to Purchase Land for Project

TORONTO, Sept. 29, 2011 /CNW/ - Gladstone Pacific Nickel Limited (ACN 104 261 887) ("GPNL" or the "Company") announces that it has signed legally binding contracts with the State of Queensland and Gladstone Ports Corporation Limited to purchase land at Gladstone, Queensland to be used for the Gladstone Nickel Project. Further details are set out below.

GPNL is party to legally binding agreements with the Queensland Government to acquire land at Gladstone for its refinery and residue storage facility for A$33 million subject to various approval and development conditions. The Company has now concluded negotiations with the relevant agencies to revise the content and timing of the development conditions applicable to the land. The changes are as follows.

(a) Conditions as to the Marlborough mine being commenced and ore transport and supply being contracted have been removed and replaced by a condition that GPNL demonstrate (by 30 June 2015 or such later date as the parties may agree) that it is committed to proceeding with the proposed development of the Project.
(b) GPNL will relinquish part of the area originally subject to agreement and will grant a licence to the adjoining landowner, Wiggins Island Coal Export Terminal Pty Ltd (WICET) to use parts of the land for lay down purposes, for extraction of landfill and to undertake defined works including the construction of bunds.
(c) The condition as to the Project being financed has been removed and replaced by a condition that GPNL raise sufficient funds (whether by way of equity capital, debt funding (or a blend of the two) to enable it to purchase the land.
(d) The provision for a sunset date for extension of the date for satisfaction of these conditions has been extended to 31 December 2016, however the contract provides that this date will not be extended beyond 31 December 2016 (except by agreement of the parties (acting reasonably) in exceptional circumstances, with a specific provision contemplating that this could occur if the time for completion of works by WICET has been extended.

GPNL is able to proceed with the purchase of the land at any time, subject to the availability of funds. GPNL considers that the modification of the conditions as described above is advantageous for its timetable for the development of the Project.


Gladstone Pacific Nickel Limited is an Australian mining development company presently undertaking an Integrated Definitive Feasibility Study for the Gladstone Nickel Project. The Company's vision is to build a major long-life nickel cobalt refinery at the deepwater Port of Gladstone, in Central Queensland, Australia, treating abundant high grade nickel laterite ores from New Caledonia and other south-west Pacific islands, underpinned by beneficiated ores from its own Marlborough deposits. The Project has the potential to be one of the largest of its type in the world producing some 126,000 tpa nickel (8 - 10% of global nickel demand) and 10,400 tpa of cobalt metal from its first two stages.


Disclaimer:

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration success, continued availability of capital and financing, and general economic, market or business conditions.



For further information:

Blair Brewster - Gladstone Pacific Nickel Ltd
Tel:+61(0)7 3231 7100
Email: info@gladstonepacific.com.au