ASX-listed Nickel Mines has raised A$55-million in a share placement as the first tranche of a multi-component financing package to increase its stake in the Ranger project from 17% to 60%.
The placement will see the issuance of 137.5-million new shares at a price of A$0.40 a share, which is a 6.1% discount to the 30-day volume-weighted average price.
The placement precedes the issuance of $40-million of new shares to Shanghai Decent that will complete the equity component of Nickel Mines’ $121.4-million funding requirement to move its interest in the Ranger project, in Indonesia, to 60%.
Shanghai Decent will be issued its new equity at A$0.41 a share, increasing that company’s ownership interest to about 18.1%. Last month, Decent Investments, an associate company of Shanghai Decent, agreed to provide Nickel Mines with the $80-million debt component needed to complete the financing package.
Nickel Mines closed at A$0.42 a share on Wednesday.