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Mincor Resources raises $23 million to accelerate nickel sulphide mining in WA

Funds raised will underpin ongoing resource drilling aimed at building mining inventory, and feasibility studies for an integrated mine plan, as well as regional exploration.
Mincor Resources raises $23 million to accelerate nickel sulphide mining in WA
Independence Group NL contributed $1.5 million in the placement and will hold 4% of Mincor

Mincor Resources NL (ASX:MCR) has raised $23 million in a capital raising to fast-track plans to re-start high-grade nickel sulphide mining in the Kambalda district of Western Australia.

The raising comprises an $18 million placement to institutional, professional and sophisticated investors at 4 cents a share and a share purchase placement to raise up to an additional $5 million on the same terms as the placement.

This follows the binding agreement to purchase the Long Nickel Operations from Independence Group NL (ASX:IGO), the offtake term sheet with BHP Nickel West, recent drilling success and mineral resource upgrade at the Cassini.

It also follows the company’s potential to re-join the ranks of Australia’s nickel sulphide miners in the near term.

“We have articulated a pathway to production”

Mincor managing director David Southam said: “The success of the placement and the high level of interest received from institutional investors shows that our nickel restart plans are now rapidly gaining momentum.

“We have articulated a pathway to production which is clearly aimed at positioning Mincor as a participant in the fast-growing battery metals sector through class-one nickel production in one of the world’s great nickel sulphide provinces.

“Our focus now turns to a number of critical elements in the nickel restart plan including building our mining inventory with further resource extension drilling at the Cassini, Long and Ken prospects and delivery of feasibility studies.”

Southam added: “We will also allocate funds to testing an early-stage Cassini look-alike target at Juno 4 and consider any early preproduction capital expenditure opportunities to prepare us for operational readiness.”

Share placement and purchase plan

The placement was extremely well supported and the issue price of 4 cents a share represents an 11.1% discount to the closing price on May 22, 2019 and a discount of 7.6% to the volume weighted average market price.

Mincor is also aiming to raise up to $5 million via a share purchase plan (SPP) which will allow all eligible shareholders to subscribe for new shares at the issue price of 4 cents per share.

Directors intend to cap the SPP at $5 million however if total SPP applications are in excess of $5 million the directors reserve the right to accept oversubscriptions or to scale back applications.

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Mincor Resources NL Timeline

Newswire
November 18 2012

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