A$10 Million To Support Aggressive Drilling Activities
Poseidon Nickel (ASX: POS) has received commitments to raise A$10 million through a private placement of its ordinary shares to clients of Morgans Corporate Limited, who acted as sole lead manager of the Placement.
Managing Director and CEO, Peter Harold, said this placement will provide the company with funds to accelerate its exploration activities at Black Swan Project in Western Australia and aggressively explore the Southern Terrace where the company has recently discovered the high-grade Golden Swan massive sulphide nickel mineralisation.
“Funds will be allocated to completing the Golden Swan drill drive, the Golden Swan resource drilling program, further exploratory drilling and EM surveys within the Southern Terrace and Resource to Reserve conversion drilling of the Silver Swan Resource.
“All these activities are aimed at building a sufficient high-grade inventory at Black Swan to allow mining to recommence after a 10-year hiatus. We are very excited about the potential of the Southern Terrace and thank Morgans for their assistance with this placement.”
The company intend to use the funds raised for the following purposes:
- Complete the Golden Swan Drill Drive;
- Undertake up to 15,000 metres of diamond core Resource drilling on the Golden Swan mineralisation;
- Undertake diamond drilling from surface and/or underground to further test the potential of the Southern Terrace to host additional high-grade nickel mineralised zones;
- Additional down hole electromagnetic surveys;
- Resource to Reserve drilling of the Silver Swan orebody to increase the Reserve base; and
- General working capital purposes
