- Poseidon Nickel (POS) receives commitments from institutional, professional and sophisticated investors to raise a $22 million placement
- Around 200 million shares will be issued at 11 cents per share — representing a 10 per cent discount to the 10-day volume-weighted average price
- In addition, eligible shareholders may subscribe for up to $30,000 worth of shares under a share purchase plan to raise an extra $3 million
- The money will be used to conduct drilling and exploration activities within the Black Swan Project in Western Australia
- Company shares are down 13 per cent to trade at 11.8 cents at 1:10 pm AEST
Poseidon Nickel (POS) has received commitments from institutional, professional and sophisticated investors to launch a $22 million placement.
The company will issue 200 million shares to new and existing investors at a price of 11 cents per share. This represents a 10 per cent discount to the 10-day volume-weighted average price and a 18.5 per cent discount to last closing price.
The placement shares are expected to settle on August 9 and will be issued on the following day.
In addition, Poseidon Nickel will launch a share purchase plan to raise another $3 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of new shares at the same issue price of the placement.
The company will use the funds to conduct exploration work within its Black Swan Project in Western Australia.
Specifically, the money will go towards exploration drilling at the Golden Swan trend, resource drilling at Silver Swan to convert existing mineral resources to ore reserves, and to undertake mining and production studies to potentially recommence operations at Black Swan.
Managing Director and CEO Peter Harold commented on the fundraising.
“This oversubscribed placement supports the company on our continued strategy to build high-grade nickel inventory at our Black Swan project and progress the project toward a potential recommencement of operations in 2022,” Mr Harold said.
“Funds will also be allocated to reviewing the exploration potential of our Lake Johnston and Windarra nickel projects.”
Company shares fell 13 per cent to trade at 11.8 cents at 1:10 pm AEST.