PERTH (miningweekly.com) – Nickel hopeful Mincor Resources will raise A$23-million through a share placement and share purchase plan (SPP) to fast-track its plans to restart nickel sulphide mining in the Kambalda district, in Western Australia.

Mincor earlier this week struck a A$9.5-million deal to acquire the Long nickel operation from fellow-listed Independence Group, adding some 32 000 t of contained nickel to its portfolio and consolidating the company’s land-holding in Kambalda.

The capital raising announced on Friday would consist of a A$18-million share placement to sophisticated and professional investors, and an SPP to raise a further A$5-million.

Mincor will place some 45-million shares, at a price of 40c each, under its existing placement capacity. The offer price represented an 11.1% discount to the company’s closing price on May 22, and a 7.6% discount to the five-day volume weighted average share price.

Under the SPP, eligible shareholders would be allowed to subscribe for up to A$15 000 worth of new shares in the company, also at an issue price of 40c a share.

“The success of the placement and the high level of interest received from institutional investors shows that our nickel restart plans are now rapidly gaining momentum following the binding agreement to acquire Long, completion of the offtake term sheet with BHP Nickel West, and the recent Cassini mineral resource upgrade,” said Mincor MD David Southam.

“We have articulated a pathway to production which is clearly aimed at positioning Mincor as a participant in the fast-growing battery metals sector through Class-1 nickel production in one of the world’s great nickel sulphide provinces.

“It was particularly pleasing to note BHP’s recent announcement regarding its commitment to Nickel West and the nickel sulphide market. This is an endorsement of our strategy of engaging with Nickel West.”

Southam said that Mincor’s focus would now turn to a number of critical elements in the nickel restart plan, including building its mining inventory with further resource drilling at Cassini, Long and the Ken prospect, and delivery of feasibility studies for an integrated mine plan.

“We will also allocate funds to testing an early-stage Cassini look-alike target at Juno 4, and consider any early pre-production capital expenditure opportunities to prepare us for operational readiness.”