Poseidon Nickel Limited (ASX: POS) has received firm commitments for a placement of A$6M at A$0.02 per share to investors. Poseidon is a nickel sulphide exploration and development company with three projects located in the Goldfields region of Western Australia.
Poseidon owns the Windarra, Black Swan, and the Lake Johnston nickel projects with a resource base of around 400,000t of nickel and 180,000oz of gold.
“We are pleased with the support for the placement and welcome a number of new institutional investors to the register,” commented Poseidon CEO and managing director, Peter Harold.
“We look forward to drill testing the EM target near the Silver Swan decline and the Western Ultramafic at Lake Johnston and continuing the workstreams relating to the restart of Black Swan.”
Funds raised will primarily be applied to exploration drilling at both Black Swan and Lake Johnston and further confirmatory metallurgical test work on the open pit disseminated ore for the Black Swan restart.
The funds will be used for offtake and debt financing negotiations, securing accommodation in the region, completion of the prefeasibility study on the expansion, remediation work on the Lake Johnston tailings facility (dust management), and care and maintenance costs.
Drill rigs have been secured for both the exploration programme near the Silver Swan Decline and to obtain drill core for the metallurgical testwork programme. Both rigs are scheduled to arrive during August 2023.
The placement is expected to settle on 10 August 2023 with 297.5M shares to be allotted on or around 11 August 2023 under the company’s placement capacity. In addition, director participation 2.5M shares will be issued, subject to shareholder approval at the Poseidon’s annual general meeting in November 2023.
Petra Capital Pty Limited and Morgans Corporate Limited acted as Joint Lead Managers and Joint Bookrunners to the Placement.
For further information, please visit: www.poseidon-nickel.com.au
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