European Nickel plc has snapped up minority interests in two mining companies to expand its strategic nickel interests in the Philippines.

The AIM-listed mining company bought a 19.3 per cent interest in fellow AIM miner Toledo Mining Corporation plc and an 18.7 per cent stake in Berong Nickel Corporation (BNC) in the Philippines for a combined price tag of $48 million (£24.3 million).

Since Toledo holds a majority stake in BNC, European Nickel’s acquisition effectively amounts to a 29.5 per cent interest in BNC.

Simon Purkiss, MD of European Nickel, says the purchase is in line with the business’ strategy to increase its critical mass and advances the team’s objective to become a mid-tier, low cost nickel producer.

“We look forward to working with our partners in the Philippines to progress the projects towards full-scale commercial production," he adds. “At Berong there is opportunity to increase output of the direct ore shipping operation for relatively modest capital expenditure.”

Last year, European Nickel turned over $9.5 million (£4.8 million), and made a profit of $5.6 million (£2.8 million).