Institutions are putting up �84 million at 35p to back AIM minnow European Nickel's Calda nickel project in Turkey.

Canaccord Capital has assembled investors to contribute almost twice European Nickel's pre-placing stockmarket value of �43.4 million — before �4 million expenses — as the equity component of a total funding package of $310 million (�171 million), including a �39 million acid treatment plant. Managing director Simon Purkiss hopes to bring Calda, containing an estimated 33.5 million tonnes at 1.14 per cent nickel, into production in 2008.

Advisers say institutions were willing to subscribe for up to �115 million for the project, though mining giant BHP Billiton is sitting this one out and allowing its European Nickel stake to fall from per cent 122 to 4 per cent. The 35p placing price is only 3p more than the company's 2004 AIM float price.

Purkiss, who originally received pre-float funding from such colourful characters as once-imprisoned entrepreneur Peter Briggs, says European Nickel is now moving fast to wrap up the loan part of the Calda finance package. At 35.5p, down 1.5p today, the shares now look like a longer term play.

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European Nickel	AIM	�175.34m	45.75p	0.00p
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