NEW YORK First Nickel Inc. (FNI) has achieved its full, targeted annualized production rate of 10 million pounds of payable nickel at its Lockerby, Ontario, mine.
The Toronto-based company reached its previously announced goal of about 2.5 million pounds of payable nickel production in its first quarter ended March 31.
The company also expects the Lockerby Mine to produce 6.1 million to 6.7 million pounds of payable copper over the course of the calendar year.
FNI has achieved two significant milestones since the beginning of the year, president and chief executive officer Thomas Boehlert said in a statement. Firstly, the refinancing completed last week provides access to additional liquidity and takes pressure off of the companys balance sheet, and secondly, full production at the Lockerby mine enhances our ability to generate operating cash flow going forward.
FNI announced a plan April 1 to extend its debt maturity and secure additional financing to strengthen its liquidity position, acknowledging that the company is in serious financial difficulty (amm.com, April 1
The company experienced shortfalls at Lockerby in the fourth quarter of 2012 as a result of slower-than-planned development preparation and unscheduled rehabilitation work (amm.com, Feb. 7
FNI expects to release its full first-quarter 2013 results by May 15.