Lunnon Metals (ASX:LM8) may have an avenue to monetize its Baker nickel resource of 1.03 million tonnes at 3.3% nickel through the Kambalda Nickel Concentrator, which is owned by Gold Fields, according to a Thursday note from Euroz Hartleys.

BHP (ASX:BHP) said on Wednesday it entered into agreements to divest the Kambalda Nickel Concentrator in Western Australia, along with a package of tenements and mineralization rights, to Gold Fields for an undisclosed amount.

BHP did not provide details on the deal, but Euroz Hartleys expects Gold Fields to repurpose the concentrator's existing crushing and grinding circuits for gold processing over the longer term.

Euroz Hartleys maintained its speculative buy rating on Lunnon Metals with an AU$0.84 per share target price.

Lunnon Metals shares fell 4% in recent trade.