PERTH (miningweekly.com) – Nickel developer Poseidon Nickel on Monday unveiled a A$25-million capital raise to fund the start of operations at its Black Swan project, in Western Australia.
The ASX-listed company has received commitments to place 200-million new shares, at a price of 11c each, to existing and new institutional and retail investors, to raise an initial A$22-million.
The shares will be placed under Poseidon’s existing placement capacity, and will not require shareholder approval.
In addition, the company would also launch a share purchase plan (SPP), offering existing shareholders the opportunity to subscribe for an additional A$30 000 worth of new shares, also priced at 11c each, to raise a further A$3-million.
The placement price represents a 10% discount to Poseidon’s ten-day volume weighted average share price, and an 18.5% discount to the company’s last closing price.
“This over-subscribed placement supports the company on our continued strategy to build high-grade nickel inventory at our Black Swan project and progress the project toward a potential recommencement of operations in 2022,” said Poseidon MD and CEO Peter Harold.
“The funds raised will be used to continue exploration activities at Golden Swan and across the Southern Terrace, undertake drilling to convert additional Silver Swan mineral resources to ore reserves and complete mining and production studies at Black Swan. Funds will also be allocated to reviewing the exploration potential of our Lake Johnston and Windarra nickel projects.”
A recently completed scoping study into the refurbishment and operation of two processing plant configurations at the Black Swan nickel project has estimated a capital cost of between A$13.4-million and A$22.1-million.