A letter of intent is currently being prepared, which will provide for the acquisition of the Cajalbana nickel deposit on a stage basis. The first phase will involve a drilling expenditure of $189,000 in order to define the limits of the deposit currently (45Mt at 1.25% nickel). The deposit remains open at depth and to the east, this program will also define the gold content of deposit.

Commercial terms have been accepted in principal. Nichromet will be responsible for finding 100 % of exploration and capital expenditures and receive 80% of the cash flow until all expenditures have been reimbursed subsequent to which profits will be split 50-50 between Nichromet and Cuban Government.