Black Swan open pit water level in September 2022. Source: Poseidon Nickel
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  • Poseidon Nickel (POS) looks to raise up to $9 million through a $6 million private placement and $3 million share purchase plan (SPP)
  • The placement will issue 171.5 million shares at 3.5 cents a share, an 18.2 per cent discount to the five-day volume-weighted average price (VWAP) of 4.3 cents
  • Funds raised will be used to restart the Black Swan project in Kalgoorlie and complete pre-production works, drilling and a feasibility study
  • New shares under the placement are expected to settle on December 7 with allotment on December 8
  • Shares in Poseidon are down 12.2 per cent, trading at 3.6 cents at 2:55 pm AEDT

Poseidon Nickel (POS) will launch a $3 million share purchase plan (SPP) after receiving commitments to raise $6 million via a private placement for a total capital raise of $9 million.

The placement will issue 171.5 million shares at 3.5 cents a share, an 18.2 per cent discount to Poseidon’s five-day volume-weighted average price of 4.3 cents.

Funds raised will be used to restart the Black Swan project in Kalgoorlie, specifically being used for pre-production works, resource drilling and completing the feasibility study.

“This placement and SPP will support the company’s strategy to grow our nickel inventory and to “Fill the Mill” at Black Swan as we move to a decision to proceed in Q2 2023 with first production to follow in 2024,” Managing Director and CEO Peter Harold said.

“The funds raised will be used to convert more resources to reserves at Black Swan to expand the mine life, continue with pre-production works and undertake an extensive drilling program at Lake Johnston targeting Emily Ann-style mineralisation.”

The SPP will allow eligible Poseidon shareholders to apply for up to $30,000 of new shares from December 5.

New shares issued under the SPP will be offered as the same price as the placement and will close on December 19.

The placement shares are expected to settle on December 7 with allotment on December 8.

After the conclusion of the placement, the company will have around $10.5 million in cash before the SPP.

Shares in Poseidon were down 12.2 per cent, trading at 3.6 cents at 2:55 pm AEDT.

POS by the numbers
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