- Nickel Mines (NIC) has successfully completed its institutional entitlement offer, raising approximately $179 million
- Under this entitlement offer, shareholders received one new share for every 3.6 shares held at a price of 50 cents each
- Nickel Mines will now be undertaking the retail component of the entitlement offer to raise an additional $52 million
- Once the company has received money from both the institutional and retail entitlement offers, it will use it to boost its interest in two Indonesian nickel mines
- Currently, it holds 60 per cent in each project but hopes to increase that to 80 per cent
- Nickel Mines has ended the day a slight 1.63 per cent in the green with shares trading for 56 cents each
Nickel Mines (NIC) has successfully completed its institutional entitlement offer, raising approximately $179 million.
Under this entitlement offer, shareholders received one new share for every 3.6 shares held at a price of 50 cents each.
This represented an 11.5 per cent discount to the last trading price of 56.5 cents on May 18.
Strong demand was received from both existing shareholders and new institutional investors.
Nickel Mines will now be undertaking the retail component of the entitlement offer to raise an additional $52 million.
The retail entitlement offer will open on May 26 and close on June 9.
Once Nickel Mines has received money from both the institutional and retail entitlement offers, it will have $231 million which it will use to boost its interest in two Indonesian nickel mines.
Currently, Nickel Mines owns a 60 per cent interest in both the Hengjaya Nickel Rotary Kiln Electric Furnace (RKEF) Project, or HNI, and the Ranger Nickel RKEF Project, RNI.
The remaining 40 per cent of both projects is owned by Shanghai Decent Investment Group.
The company hopes that it can use this money to increase its holding to 80 per cent in both projects.
If this does happen, then Nickel Mines will receive roughly 35,000 tonnes of nickel per year. It currently gets 26,000 tonnes.
“We are delighted with the success of the offer which is a clear endorsement of the company’s achievements to date and intention to increase its ownership interests in both HNI and RNI to 80 per cent,” Managing Director Justin Werner said.
Nickel Mines has ended the day a slight 1.63 per cent in the green with shares trading for 56 cents each in a $940.9 million market cap.