THE BOURSE WHISPERER: Poseidon Nickel (ASX: POS) has completed a capital raising with commitments received for a placement of Fully Paid Ordinary Shares to raise $30 million.
The placement is for just over 166.6 million shares at 18 cents per share to strategic, professional and sophisticated investors.
According to Poseidon the purpose of the Placement is to enable it to complete the remaining refurbishment activities at Mt Windarra, to commence capital works at Lake Johnston, repay the Minderoo debt and for normal operating expenses.
At Mt Windarra, Poseidon will prepare the mine for the recommencement of mining operations, the restart costs for which have previously been estimated at $11 million.
Under the terms of the recently-announced ore tolling and concentrate purchase agreement (OTCPA) with Nickel West, ore from Mt Windarra will be truck hauled and toll treated into a smeltable grade concentrate at the concentrator facility at Leinster.
The concentrate produced will be purchased by Nickel West.
Upon completion of the purchase of the Lake Johnston nickel project announced in September, Poseidon will commence the capital works required to restart that operation.
The company indicated it is in the process of finalising the capital costs for the restart which it anticipates to be less than $10 million excluding working capital.
“We have been delighted by the strong support from investors to provide the necessary funding for Poseidon to get ready for production,” Poseidon Nickel CEO David Singleton said in the company’s announcement to the Australian Securities Exchange.
“We now have an enviable pipeline of projects, supported by a strong balance sheet with an emerging nickel market.”