Avebury, which had most recently been owned by China-backed MMG , was sold to Dundas last year and has been on care and maintenance since 2009.

The will produce around 7,000-8,000 tonnes of nickel and Transamine has secured offtake for the full amount, the person said. The concentrate will be sold into the battery and stainless steel markets.

The trading house will provide a line of finance in double digit millions of dollars, the person said.