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- Nickel Mines (NIC) is looking to raise $364 million to purchase a 30 per cent interest in the Angel Nickel Project in Indonesia
- In October, the company entered agreements to purchase 70 per cent of the Angel project for US$490 million (around A$664 million)
- The payment will take place in two tranches, with the entitlement offer to support the first payment phase
- Under the entitlement offer, the company is offering two new shares for every 11 current shares held
- The offer price is 94 cents each, a 10 per cent discount to the last traded price
- Nickel Mines entered a trading halt this morning, meaning company shares will be paused until Friday, December 4, or when the raise is completed
- Company shares last traded for $1.05 each on December 1
Nickel Mines (NIC) is aiming to raise $364 million to purchase a 30 per cent interest in the Angel Nickel Project in Indonesia.
In October, the company signed an agreement with Shanghai Decent Investment and Decent Resource to purchase a 70 per cent interest in the project.
The purchase of the interest will total US$490 million (around A$664 million) and will be undertaken in two parts.
For 30 per cent of the project, Nickel Mines will pay US$210 million (around A$285 million) by no later than March 31, 2021.
The second purchase of the remaining interest will cost Nickel Mines of US$280 million (nearly $380 million) and will need to be paid by December 31, 2021.
Entitlement offer
The majority of the proceeds from the entitlement offer will be put towards funding Nickel’s first acquisition payment. Nickel Mines has already made an early payment of US$30 million (around A$40 million), reducing the payable balance to US$180 million (approximately A$243 million).
Remaining funds will be spent on strengthening the company’s balance sheet and provide additional working capital.
The entitlement offer is two shares for every 11 shares held and will be at a price of 94 cents each, a 10 per cent discount to the last traded price.
Nickel Mines entered a trading halt this morning, meaning company shares will be paused until Friday, December 4, or when the raise is completed.
Company shares last traded for $1.05 each on December 1.
