Poseidon Nickel in talks to acquire nickel project in WA

Shares in Poseidon were up two cents, or eight per cent, at 27 cents.

"The principal terms of an acquisition have been tabled by the parties but negotiations are ongoing and incomplete," the company said.

"The potential acquisition will be complementary to Poseidon's cornerstone asset, namely the Windarra nickel project in the north east Goldfields."

The company said it would provide an update "in the next few weeks".

The Windarra nickel project is near the Murrin Murrin mine, which is 60 per cent owned by Minara Resources Ltd, formerly known as Anaconda Nickel Ltd under Forrest's former leadership.

Minara deferred a $300 million expansion at the mine after letting 200 workers go in July.

Several nickel mines in WA have been shut down or place on care and maintenance in recent weeks due to the low price for the metal, including operations run by Mincor Resources NL, Ukrainian-owned Consolidated Minerals Ltd and Russian-owned Norilsk Nickel.