PERTH (miningweekly.com) – ASX-listed GME Resources will raise A$4-million in a share placement to advance work at its NiWest nickel/cobalt project, in Western Australia.
The company on Wednesday said it had received firm commitments for the placement of 42.1-million shares, at a price of 9.5c each, representing a 14.7% discount to GME’s five-day volume weighted average share price.
The shares will be placed under GME’s existing capacity and will not require shareholder approval.
“The placement proceeds will be directed towards activities which we believe can add significant value for GME shareholders including the commencement of the NiWest definitive feasibility study (DFS) and accelerated negotiations towards a binding offtake agreement with Stellantis,” said GME MD Paul Kopejtka.
GME earlier this week signed a non-binding memorandum of understanding (MoU) with New York-listed Stellantis in relation to future offtake of battery grade nickel and cobalt sulphate from the NiWest operation.
“NiWest has many positive attributes including high nickel grades, a proven metallurgical pathway, a significant investment in development studies and, importantly, proximity to critical infrastructure. Following on from the recent signing of a non-binding MoU with Stellantis for the future offtake of battery-grade nickel and cobalt sulphate products from NiWest, we are entering a truly exciting phase for GME,” said Kopejtka.
NiWest is an advanced nickel/cobalt development project and will produce 90 000 t/y of battery grade nickel and cobalt sulphate. To date, more than A$30-million has been invested into drilling, metallurgical test work and development studies.
The DFS for NiWest is due to commence this month.