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Nickel Mines raises first A$179m

21st May 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Nickel Mines has completed the institutional component of its entitlement offer, raising an initial A$179-million.

The company earlier this week flagged a A$231-million equity raise to fund the purchase of an additional 20% interest in the Hengjaya and Ranger Nickel rotary kiln electric furnace (RKEF) plants, in Indonesia.

The cash consideration payable will consist of a $120-million exercise price for the option, or $60-million for each 20% interest in the two RKEF plants, as well as a $30-million payment representing compensation for Shanghai Decent’s estimated share of undistributed retained earnings of the interest in the RKEF plans being acquired by Nickel Mines.

Nickel Mines on Thursday said that the institutional component of the entitlement offer, which is priced at 50c a share, had been well supported by institutional shareholders, with a take-up of approximately 75% and strong demand from both existing and new institutional investors, with the balance of the institutional component comprising renounced entitlements and entitlements attributable to ineligible shareholders, being oversubscribed.

“We are delighted with the success of the offer which is a clear endorsement of the company’s achievements to date and intention to increase its ownership interest in both the Hengjaya and Ranger Nickel to 80%,” said Nickel Mines MD Justin Werner.

The retail component of the entitlement offer will open on May 26 and is expected to raise a further A$52-million. The retail component will close on June 9.


 

Edited by Creamer Media Reporter

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