Western Areas looks to raise A$100m
PERTH (miningweekly.com) – Nickel miner Western Areas on Tuesday announced plans for a A$100-million capital raise to fund the development of its Odysseus project, and to fund exploration and organic growth projects.
The company told shareholders that it would conduct a fully underwritten institutional placement to sophisticated, professional and institutional investors to raise an initial A$85-million.
The placement will be priced at A$2.15 a share, representing an 8.1% discount to the company’s last closing price, and a 15.2% discount to its ten-day volume weighted average share price.
The share placement would be conducted under Western Areas existing placement capacity, and will not require shareholder approval.
“The placement supports the development of the Odysseus underground mine, which is progressing well with excellent advance rates being achieved while also providing funding for Western Areas’ exploration portfolio where we hope to make significant progress in 2021,” said MD Dan Lougher.
“With greater balance sheet flexibility, the company will be able to take advantage of opportunities within the portfolio and maximise returns to our shareholders.”
In addition, the miner will also undertake a share purchase plan (SPP) aimed at raising a further A$15-million. The SPP will allow shareholders to subscribe for an additional A$30 000 worth of new shares in the company.
The SPP will close on April 6.
A previously completed definitive feasibility study estimated that the Cosmos Odysseus project would produce on average 13 000 t/y of nickel-in-concentrate over an initial ten-year mine life, based on an ore reserve of 8.1-million tonnes, grading 2% nickel for 164 000 t of nickel.
First nickel-in-concentrate production from Odysseus is planned for the December quarter of 2023, with commissioning of the hoisting shaft and winder set for the March quarter of 2023.
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