Sirius managing director Mark Bennett. Picture: Michael O Brien/The West Australian.
Sirius managing director Mark Bennett. Picture: Michael O'Brien/The West Australian.

UPDATE 2.35pm: Sirius Resources and the Ngadju group have agreed to material terms for a mining lease at the Nova nickel-copper project, east of Norseman.

The Goldfields Land and Sea Council has advised Sirius the traditional custodians of the land covering Nova have given the necessary consent.

It is subject to Sirius and the Ngadju group entering a binding and definitive agreement, which is expected to be finalised by mid-2014.

Sirius managing director Mark Bennett said the Ngadju group will share in the benefits of the development of the Nova mine via a variety of initiatives.

"I have the utmost respect for them and the manner in which they are conducting this process, and I firmly believe that we can work together to create a lasting legacy that will be of benefit to all," he said.

The native title hurdle is another tick in the box for Sirius, which this month received shareholder approval to buy prospector Mark Creasy out of the Nova-Bollinger nickel-copper deposits in a cash and scrip deal worth more than $200 million.

With the project now owned 100 per cent by Sirius, attention will be focused on finishing a definitive feasibility study for a mine development estimated to cost $471 million.

First production has been targeted for 2017 with the project's initial mine life at least 10 years.

Mr Bennett has said Sirius has no intention of selling a stake of the project to a third party as part of its financing plans.

He said Sirius remained open to all financing options and had been talking to 23 groups about nickel and copper offtake, with a plan to create a shortlist over the coming months.

The definitive feasibility study is on track to be completed by the end of June and likely to be announced in early July.

Sirius shares closed up 12 cents, or 4.05 per cent, at $3.08.

The West Australian

Popular videos

Our Picks

Follow Us

More from The West