The future of perennially embattled nickel miner Albidon is again under a cloud after a white knight abandoned plans to invest in the company after completing due diligence.
Albidon announced this morning the rescue deal with an unnamed third party would not go ahead despite months of due diligence, detailed technical work and exhaustive discussions.
"The board is currently considering other third party proposals regarding potential new investors and other restructuring options," the company said in a statement.
However Albidon's task of attracting a white knight has been made more difficult by an independent technical review of its Munali nickel mine in Zambia which found lower grades and continuity had reduced the size of its ore body compared with previous estimates.
"The board is working with the independent technical experts, who are examining the mine geology in order to clarify the resource status and reconfigure the mine plan," the company said.
"What this may mean for the continued operation of Munali mine is currently the focus of further work."
Albidon was forced to close its Munali mine in November last year because of low nickel prices and poor ore recovery.
In January, it announced it was in talks with an unnamed third party over a possible transaction and would open its books exclusively to the suitor.
It was the second time Albidon has been forced to put up the white flag, having called in administrators in 2009.
China's Jinchuan Group holds a 50.4 per cent stake in the company.Albidon shares have been in suspension since August last year having last changed hands for 7.5 cents.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.