Pacific Nickel Mines Limited (ASX: PNM) has successfully completed a placement to raise A$5.25 million to support its Soloman Islands nickel developments.
The Lead Manager to the Placement was Bridge Street Capital Partners.
CEO Geoff Hiller said the Placement, which was oversubscribed, was well supported by existing shareholders and a large number of new shareholders, both institutional and sophisticated investors from Australia, UK and Europe.
The funds raised will be used for:
a) ongoing exploration and feasibility work in relation to the company’s Nickel Projects in the Solomon Islands with a priority on the Kolosori Nickel Project;
b) an early works capital program at Kolosori; and
c) working capital and general corporate purposes.
“The company is delighted with the outstanding response from investors to the capital raising and in particular the participation from existing shareholders and new institutional shareholders,” Mr Hiller said.
“The funds enable the company to continue to fast track its 80% interests in two nickel laterite DSO projects in the Solomon Islands.
“The company will now carry out some early works at its Kolosori Project in preparation for its development next year which is subject to a mining lease being granted by early 2022.
“Next year is expected to be a very exciting time with both projects advancing towards production.”
Solomon Islands Nickel Projects
Pacific Nickel holds an 80% interest in the Kolosori Nickel Project (PL05/19) and an 80% interest in the Jejevo Nickel Project (PL 01/18), both of which are located on Santa Isabel Island in the Solomon Islands. The remaining 20% interests are owned by local landowners.
Both projects have a number of positive aspects including close proximity to the coast, no processing requirements, a low capital route to direct shipping, and local landowner support.
In November 2020, the vompany released an initial JORC resource estimate for Kolosori of 5.89 million tonnes at 1.55% Ni at a 1.2% Ni cut off.
The company has since completed an initial 83-hole programme and almost completed a second stage 151-hole drilling programme designed to increase confidence in the resource.
Pacific has recently submitted a Mining Lease Application and Environmental and Social Impact Assessment for the Kolosori Project. The company is expecting the Mining Lease to be approved in Q1 2022 with development of the project commencing in Q2 2022.
The company is focusing on an early capital works programme at Kolosori in the next few months to prepare for the main development next year. These works include preparation of pads and drainage for the wharf, camp and mining fleet maintenance areas.
The company is advancing discussions with offtakers and financiers for the development of the Kolosori Project.
In early October 2021, the company announced an initial JORC mineral resource estimate at the Jejevo Nickel Project of 7.82 million tonnes at 1.46 % Ni at a 1.2% Ni cut off.
The company expects to complete a feasibility study and apply for a mining lease for the Jejevo Project in 2022.
Extensions to the known resources at both projects will also be a priority in 2022.
Further information on please visit: http://www.pacificnickel.com
