Glencore Xstrata has agreed to sell the Sinclair Nickel Project to Talisman Mining for $10 million.

Talisman reached a binding agreement with Xstrata Nickel Australiasia (a subsidiary of Glencore) to sell the mine for $8 million plus a deferred payment of $2 million.

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The deferred payment will be contingent on production being recommenced within 6 years of the initial transaction’s completion.

Talisman has also agreed to grant Glencore the right to make an offer for off-take of the first 20,000 tons of contained nickel produced at Sinclair. Previously considered a minor player in Australian nickel mining, Talisman’s stock shot up after news of the deal was reported.

The 3-month price of nickel closed up Monday, October 20 at $15,575 per metric ton, halting two days of weakening prices on the LME with a 1.3% shift. The spot price of nickel is back up, rising by 1.2% on the LME yesterday to close at $15,500 per metric ton. Following a two-day drop, the cash price of primary Indian nickel increased by 0.6% to INR 971.80 ($15.85) per kilogram.

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Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome held steady at CNY 8,300 ($1,351) per metric ton. The price of Chinese ferro-moly saw essentially no change for the fifth day in a row, remaining around CNY 145,000 ($23,609) per metric ton.

For the fifth day in a row, the Allegheny Ludlum 316 stainless surcharge remained essentially flat at $1.25 per pound. The price of Chinese 316 stainless coil was unchanged at CNY 26,000 ($4,233) per metric ton. The price of Chinese 304 stainless coil saw essentially no change for the fifth day in a row, remaining around CNY 16,400 ($2,670) per metric ton. The price of Chinese 316 stainless steel scrap was unchanged at CNY 16,100 ($2,621) per metric ton. The price of Chinese 304 stainless steel scrap held steady at CNY 16,400 ($2,670) per metric ton.