PERTH (miningweekly.com) – ASX-listed Nickel Industries has raised an initial A$264-million from its $471-million capital raise target, completing the institutional component of its capital raise efforts.

The company on Thursday said it had issued 259.1-million shares at a price of A$1.02 each, with the institutional placement strongly supported by both new and existing institutional shareholders.

Settlement of the institutional placement is scheduled for January 23, and the shares would start trading on January 24.

In addition to the institutional placement, Nickel Industries will also undertake a non-underwritten share purchase plan (SPP) to raise up to $20-million, and a number of strategic investments, including a $270-million placement to Newstride, a $15-million placement to Shanghai Wanlu Investment Co and a $1.4-million placement to nonexecutive director Mark Lochtenberg.

Funds raised will go towards the acquisition of a 10% interest in two producing nickel assets, including a greater stake in the Oracle nickel project.

“We are extremely pleased to have completed the institutional component of the capital raise, which was very strongly supported by existing and new institutional investors. This is a clear endorsement of Nickel Industries’ strategy to establish the company as a leading producer of battery grade ‘Class 1’ nickel for the electric vehicle market,” said MD Justin Werner.

“Our diversification into the ‘Class 1’ electric vehicle battery market commenced in the fourth quarter of 2022, with our maiden production of nickel matte which has delivered strong margins. The Electric Vehicle Battery Supply Chain Strategic Framework Agreement with Shanghai Decent will allow us to deliver our goal of diversifying our sales and product mix into the growing electric vehicle battery market, by establishing an immediate presence through the acquisition of a 10% interest in the PT Huayue nickel cobalt (HNC) high-pressure acid leach (HPAL) project, one of the world’s lowest cost and lowest carbon intensive HPAL projects. HNC provides a future growth platform for the company to use cleaner technology with lower emissions intensity at the very bottom end of the cost curve, to support global electrification and decarbonisation trends.”