Mallee urges uptake of share placement

16th August 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Junior nickel developer Mallee Resources has prompted existing shareholders and investors to partake in its capital raise, which will close on August 19.

The company was hoping to raise between A$20-million and A$70-million through a share issue, priced at 70c a share, to fund the restart of its recently acquired Avebury nickel project, in Tasmania, and to enable a return to share trading on the ASX.

Mallee said on Tuesday that while the minimum funding of A$20-million would achieve these aims, an investment of A$70-million optimises the Avebury mine including allowing for capacity expansion, exploration to enlarge the resource and add additional new resources on the company’s highly prospective tenure at Melba and Avebury, and for a move towards replacing diesel equipment with battery-electric equipment in the underground mine.

Mallee in July completed the acquisition of the Avebury project by acquiring all of the shares in Allegiance Mining, drawing down a $20-million debt facility and $10-million bridging loan facility to fund the acquisition.

Avebury is currently estimated to host a mineral resource of 29.3-million tonnes, grading 0.9% nickel and 229 parts per million cobalt. The project has been on care and maintenance since 2008, owing to the onset of the global financial crisis and the subsequent fall in nickel prices.

Mining operations have restarted and around 18 000 t of ore has been stockpiled on the run-of-mine pad to date including plant commissioning feed.

“We are very close now to commissioning the Avebury processing plant and our team is both ready and excited to bring Avebury back into production,” MD John Lamb said.

“Our capital raising remains open for a limited time so I would encourage all those interested in being involved with the next exciting phase at the Avebury nickel project to subscribe.”

Edited by Creamer Media Reporter


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