Poseidon Nickel (ASX: POS) has received received overwhelming support for its Share Purchase Plan (SPP) to raise funds for its Western Australia project developments.
The SPP was heavily oversubscribed and the company received valid applications totalling approximately A$9.0 million, well in excess of the targeted $3 million.
As a result of the oversubscription, Poseidon’s Board of Directors has exercised its discretion under the terms of the SPP to accept a total of A$6 million in applications.
The company will conduct a scale-back of applications, on a pro-rata basis, based on amounts applied for under the SPP, rounded up to reflect a whole number of New Shares to A$6 million.
“We would like to thank all those shareholders who participated in the Share Purchase Plan for their continued and strong support of the company,” Poseidon’s Managing Director, Peter Harold, said.
“We acknowledge that shareholders who subscribed may be disappointed by the scale back, however we have balanced the strong SPP applications with the foreseeable capital needs of the business in the best interests of all shareholders, hence the board’s decision to take A$6 million.
“The funds raised by the recent placement and this SPP will support the company with its intended restart at Black Swan with final work streams underway to get to a Final Investment Decision (FID) during the second quarter of 2023.”
Activities include
o Resource enhancement – drilling has commenced to convert more Inferred into Indicated o Offtake – finalise a suitable offtake agreement for the concentrate
o Project financing – select the most attractive debt provider
o Major contracts – finalise the contractor for the plant refurbishment and mining
o Approvals – continue work on obtaining outstanding approvals required for the restart o Human Resources – finalise requirements and timing for onboarding personnel.
In addition, funds from the placement and SPP will be directed towards the 15,000 metre drill program at Lake Johnston to test the Western Ultramafic priority targets.
For further information please visit: https://poseidon-nickel.com.au/
