Nico announces A$7.3m raise

19th September 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX-listed Nico Resources will raise A$7.3-million in a fully underwritten one-for-five pro rata non-renounceable entitlement offer.

The entitlement offer will be priced at 40c a share, representing a 13% discount to Nico’s last closing price, and a 17.3% discount to the company’s five-day volume weighted average share price.

The company said on Tuesday that the proceeds from the entitlement offer will be used to provide working capital to further advance the Central Musgrave project, following the prefeasibility study (PFS) completed last year. The company is working towards completing a definitive feasibility study on the project.

The PFS estimated that the flagship Wingellina nickel/cobalt project will produce 40 000 t/y of contained nickel and 3 000 t/y of contained cobalt over a minimum 42-year mine life. The project’s capital cost is estimated at A$2.9-billion, with revenues estimated at A$61.7-billion over the life of the mine, while the post-tax net present value is estimated at A$3.34-billion and the internal rate of return at 18.02%.