PERTH (miningweekly.com) – Nickel miner Mincor Resources has completed the bookbuild for its A$55-million share placement to institutional, professional and sophisticated investors.
The ASX-listed company last week announced plans for a A$60-million capital raise, which would include a share purchase plan (SPP) to raise a further A$5-million, to accelerate underground development at its Northern Operations, and underground exploration and resource definition at its Cassini operations, both in Western Australia.
The company has now received firm commitments for the placement of more than 39.5-million shares at a price of A$1.39 each.
“We are pleased with the strong support shown by our existing shareholders in this capital raising, as well as the opportunity to welcome new investors to the Mincor story,” said MD Gabrielle Iwanow.
“This placement provides a platform for Mincor to accelerate both mine development and exploration activities over the remainder of 2023, bringing forward exciting opportunities within our portfolio as ramp-up to full-scale production continues. We remain focused on delivering our 2023 guidance whilst setting ourselves up for the future.
“We are also pleased to offer all existing shareholders the opportunity to participate via the SPP.”
The SPP will open on December 21 and close on January 20.
Some A$20-million of the proceeds from the capital raise will be used to advance development activities at the Golden Mile development, at the Northern Operations.
The company intends to bring the development of Golden Mile forward from the original date of mid-2023, fast-tracking grade control drilling and development access work, as well as continuing the existing extensional drilling programme across the Northern Operations.
Preparatory development work at Golden Mile is now scheduled to start in January, with first ore development expected in the fourth quarter of the 2023 financial year.
A further A$15-million of the capital raised will go towards accelerating underground exploration and the resource definition drilling programme at Cassini.
With this programme originally forecast to commence late in the 2023 financial year given existing drill rig availability, Mincor now intends to commence Cassini drilling in late January 2023, using a third underground diamond drill rig secured recently from its existing diamond drilling contractor.
The remaining funds will be used to derisk the company’s balance sheet through the remainder of the 2023 financial year.