Photo by: Bloomberg
PERTH (miningweekly.com) – Nickel miner Western Areas on Tuesday increased the cap of its planned share purchase plan (SPP) from A$10-million to A$15-million, after applications for the SPP exceeded A$20-million.
The SPP formed part of a greater capital raise announced at the end of March this year, under which Western Areas hoped to raise up to A$70-million through an SPP and share placement to buoy the company through the current low nickel price.
MD Dan Lougher said on Tuesday that, following careful consideration, the Western Areas board, in recognition of the substantial retail investor demand, had decided to increase the SPP cap.
Shareholders partaking in the SPP would be allowed to subscribe for up to A$15 000 in Western Areas' new shares, with the shares issued at a price of A$2 each.
“The company would like to thank shareholders for their continued strong support, which ensures Western Areas maintains a robust debt-free balance sheet with the ability to fund prudent development and growth initiatives,” said Lougher.