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- Nickel Mines (NIC) successfully completes its fully underwritten institutional placement and raises $148 million
- On February 9, NIC announced it would be undertaking a US$225 million (A$313.58 million) capital raising to fund a 30 per cent interest in the Oracle Nickel Project
- Under the institutional placement, a total of 108.1 million new ordinary shares were issued to new and existing institutional shareholders at $1.37 each
- The capital raising also consits of a US$106 million (A$147.73 million) conditional placement and US$13 million (A$18.11 million) share purchase plan
- Nickel Mines ends the day 1.37 per cent in the red with shares trading at $1.44
Nickel Mines (NIC) has successfully completed its fully underwritten institutional placement and raised $148 million.
On February 9, Nickel Mines announced it would be undertaking a US$225 million (A$313.58 million) capital raising to fund an initial 30 per cent interest in the Oracle Nickel Project (ONI).
Under the institutional placement, a total of 108.1 million new ordinary shares were issued to new and existing institutional shareholders at $1.37 each.
Settlement is expected to occur on February 14 with new shares to be allotted on the same day.
The capital raising also consists of a conditional placement with Nickel Mines entering a subscription agreement with its partner, Shanghai Decent.
The conditional placement will consist of a US$106 million (A$147.73 million) agreement which is subject to approval from the Foreign Investment Review Board.
The remaining funds will be raised through a share purchase plan which is aiming to raise up to US$13 million (A$18.11 million).
Eligible shareholders will be able to apply for up to $30,000 worth of shares without incurring any brokerage, commission or transaction costs.
Shares will be priced the same as the institutional placement at $1.37.
The plan will open on February 16 and close on March 8 with shares to be issued and allocated on March 15.
“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,” Managing Director Justin Werner said.
“The ONI 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 has ended the day 1.37 per cent in the red with shares trading at $1.44 for a $3.6 billion market cap.
