PERTH (miningweekly.com) – ASX-listed Nickel Mines has shelved plans for an A$18-million share purchase plan (SPP), despite applications far exceeding its target.
The company in February announced the SPP as part of a larger A$225-million funding plan to finance the acquisition of an initial 30% stake in the Oracle nickel project, in Indonesia.
However, Nickel Mines has now withdrawn the SPP, effective immediately, and would refund all application monies.
“The purpose of the SPP was to allow shareholders to participate in the capital raising announced in February, on the same terms as participants in the institutional placement and conditional placement to Shanghai Decent,” said Nickel Mines MD Justin Werner.
“The targeted amount to be raised in the SPP was approximately A$18-million. Applications have far exceeded this, with applications received totalling A$57-million. However, given market volatility and the retraction in the company’s share price in recent days, the board of directors has agreed that it is in the best interest of shareholders to cancel the SPP effective immediately, and return all applications in full.
“The proceeds of the SPP are not required for the acquisition of the 70% equity interest in the Oracle nickel project,” said Werner.
Nickel Mines' share price has fallen by more than 40c a share since March 7.