View Comments
Falcone completes Poseidon sell off
Falcone completes Poseidon sell off

UPDATE 1.45pm: Billionaire New York hedge fund manager Philip Falcone has offloaded his remaining stake in Poseidon Nickel to US investment bank Jefferies, potentially opening the way for the explorer to secure financing for its Mt Windarra nickel project.

Poseidon announced today Mr Falcone's Harbinger Capital Partners had sold shares and convertible notes in the company to Jefferies Bank by way of a private treaty.

"Some restructuring of the Harbinger Funds has been underway and this move removes any speculation about their position in Poseidon," the company said in a statement.

Poseidon said it had been talking to Jefferies about its financing needs in bringing its historic Windarra nickel project into production and looked forward to the bank's support in the future.

News of the share and note sale comes a day after Poseidon secured conditional State Government approval to restart Windarra subject to project financing and offtake contracts being in place by June 30 next year.

Harbinger has been a long term supporter and shareholder of Poseidon but began selling down its stake in the company in 2010, along with its holdings in Murchison Metals and Fortescue Metals Group.

Poseidon has already completed a definitive feasibility study for the project and is targeting initial concentrate production in 2014.

The concentrator plant to be constructed at Mt Windarra is expected to have a minimum throughput capacity of 700,000 tonnes of ore per annum.

Poseidon shares closed up half a cent, or 4.55 per cent, at 11.5 cents.