Mincor raises A$65m for Kambalda works

7th September 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Nickel developer Mincor Resources will raise A$65-million to de-risk production at its Kambalda operation, in Western Australia.

The ASX-listed miner on Tuesday announced that it would place more than 46.8-million shares, at a price of A$1.28 a share, to investors under the company’s existing placement capacity, raising an initial A$60-million.

The placement price represent an 11.1% discount to Mincor’s last closing price, and a 2.4% discount to the company’s 20-day volume weighted average share price.

Prior to the launch of the share placement, a global natural resource fund has committed to a minimum A$30-million cornerstone investment.

In addition to the share placement, the company also announced a share purchase plan, which would allow existing shareholders to subscribe for up to A$30 000 worth of new shares in the company, with the aim of raising a further A$5-million.

“This is an important capital raising which puts Mincor in an enviable position, further strengthening and de-risking our balance sheet as we begin the final countdown to nickel production at Kambalda, and allowing us to implement some key measures to enhance our operations and put our business in the best position for future growth,” said Mincor MD David Southam.

“Approximately A$15-million of the proceeds will be allocated to the construction of a brand new, purpose built Mincor-owned accommodation facility for our staff and contractors at Cassini, along with associated infrastructure for roads and power.

“This is consistent with our view that Cassini will be a long-term operation that requires appropriate long-term infrastructure. It will also eliminate the need for us to continue to use a third party operated camp in Kambalda for Cassini operations, reduce commute times, and provide important health and safety benefits for our workforce, ensuring we can continue to attract the best people to work for us.”

Southam said that a further A$15-million in funding was also earmarked for exploration, and additional funding would give Mincor increased optionality to increase exploration at the Golden Mile locations, while also having the ability to fund regional exploration efforts.

A further A$25-million will be allocated to replace the existing A$55-million syndicated project finance facility, and with the new A$30-million revolving credit facility in place, would deliver a range of benefits to shareholders, said Southam.


Edited by Creamer Media Reporter


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