Poseidon Nickel (ASX: POS) has received commitments to raise A$6 million through a private placement of ordinary shares in the company to clients of Morgans Corporate Limited, who has acted as Lead Manager of the Placement.
“This placement and SPP will support the company’s strategy to grow our nickel inventory and to ‘Fill the Mill’ at Black Swan as we move to a decision to proceed in Q2 2023 with first production to follow in 2024,” Managing Director and CEO, Peter Harold, said.
“The funds raised will be used to convert more Resources to Reserves at Black Swan to expand the mine life, continue with pre-production works, order long lead items, complete the rougher concentrate Feasibility Study and undertake an extensive drilling program at Lake Johnston targeting Emily Ann style (+3% Ni) mineralisation.
“The company would like to thank our existing and new shareholders who participated in the placement and Morgans for their role as Lead Manager.”
Share Purchase Plan
In addition to the Placement, Poseidon will also offer existing eligible shareholders the opportunity to participate in a non-underwritten Share Purchase Plan (SPP) to raise up to approximately A$3.0 million.
Under the SPP, eligible Poseidon shareholders will have the opportunity to apply for up to A$30,000 of New Shares without incurring brokerage or other transaction costs.
The company confirms that the record date for participation in the SPP is Wednesday 30 November 2022,
Use of Funds
The company intends to use the funds raised from the Placement and SPP for the following purposes:
* immediately commence an infill RC drilling program from the bottom of the dewatered Black Swan open pit to convert Inferred resources to Indicated for both the 1.1Mtpa smelter grade concentrate and 2.2Mtpa
rougher concentrate projects;
* commence a 15,000 metre RC drilling program at Lake Johnston in early 2023 targeting the Western Ultramafic Unit identified by specialised geological consultants NewExco as a high priority exploration target;
* completing the Black Swan 2.2Mtpa rougher concentrate Feasibility Study during first half 2023 to potentially support the expansion of operations at Black Swan beyond the recently released 1.1Mtpa smelter grade
concentrate project;
* reviewing the exploration potential of Windarra by NewExco to identify priority targets for future exploration
programmes; and
* general working capital purposes.
For further information please visit: https://poseidon-nickel.com.au/
