Shareholders of Perth-based Rusina Mining NL approved the scheme of arrangement for the planned merger between Rusina Mining and UK-based European Nickel PLC.

Under the approved scheme of arrangement, Rusina shareholders will receive one European Nickel PLC new share for every five Rusina shares.

The joint venture between Rusina Mining and European Nickel will create an enlarged nickel laterite entity to be known as ENK, with a combined resource and asset base of 1.35 million tonnes of contained metal across six projects in Turkey, the Philippines and Albania.

The transaction only requires Federal Court approval later this month to proceed.

Rusina Mining managing director Robert Gregory said the merger cleared the way for the 24,5000 tonne per annum Acoje project in the Philippines, and the 20,400 tpa Caldag project in Turkey.

The Caldag project is expected to start production within two years. Gregory said that Rusina Mining is expecting to secure full $US350 million funding for Caldag by the end of 2010, with $US100 million already committed by Lead Arrangers, Societe Generale and Unicredit.

Definitive Feasibility Study for the $US498 million Acoje Project in the Philippines is due to be completed in 2011. Gregory said "pre-prefeasibility studies have indicated a low cash cost operation of around $US3.35 per pound of nickel (including refining charge)."

Gregory said, "ENK would have just under $US10 million post merger and overall will have improved access to development capital, a larger balance sheet and greater share liquidity to help drive growth opportunities in a disciplined manner."