PERTH (miningweekly.com) – ASX-listed Nickel Mines has raised an initial A$148-million as part of its larger $225-million equity raise to fund an initial 30% buy-in at the Oracle nickel project in Indonesia.
The miner has completed the institutional component of the capital raise, issuing 108.1-million shares, at a price of A$1.37 each to new and existing institutional shareholders. Settlement of the placement is expected on February 14, with the new shares to start trading on February 15.
The institutional placement is the first component of the $225-million capital raise, which will also include a $106-million non-underwritten placement to partner Shanghai Decent, and a non-underwritten share purchase plan to raise up to $13-million.
“We are extremely pleased to have completed the first phase of this capital raise process. The strong support from both new and existing institutional investors is a clear endorsement of the company’s investment into the Oracle nickel project and the continuation of its track record for delivering value accretive transactions for its shareholders,” said Nickel Mines MD Justin Werner.
“The Oracle acquisition puts us on course to triple our nickel production profile from current levels by early 2023 and represents another important step in building Nickel Mines into a globally significant nickel producer.”
Nickel Mines in December inked a definitive agreement with partner Shanghai Decent Investment to acquire a 70% equity interest in the Oracle nickel project for $525-million, comprising $371-million of acquisition funding and $154-million of shareholder loans.