Join our daily newsletter At The Bell to receive exclusive market insights
- Mincor Resources (MCR) is set to undertake a $60 million capital raise to progress towards a final investment decision for the Kambalda nickel project
- The capital raising will take place in three parts: a two-tranche placement raising $50 million and a $10 million share purchase plan
- If the project gets the go-ahead, the capital raise will also fund a portion of the estimated $97 million cost of the project, as outlined in the definitive feasibility study
- Two years of exploration and resource extension will also be funded, with a little rainy day cash left over for contingencies
- Alongside achieving recent milestones mapped out in the DFS, a successful capital raise will see Mincor well on track at Kambalda
- Mincor Resources closed Thursday’s session where it started at a price of 82 cents per share
Mincor Resources (MCR) is set to undertake a $60 million capital raise to progress towards a final investment decision for the Kambalda nickel project in WA.
Big raise
The capital raising will take place in three parts.
The first part is a $17.3 million placement under the company’s existing placement capacity.
A second $32.7 million tranche of the placement will be subject to shareholder approval at a general meeting to be held in August.
Thirdly, a share purchase plan (SPP) will raise a further $10 million, subject to an ASX waiver.
All offers will be priced at 72 cents per share, representing a 12.2 per cent discount to the last closing price and a 4.6 per cent discount to the five-day volume-weighted average price.
Existing strategic shareholder IGO has already committed to subscribe for up to $13 million of the placement.
Big spend
The money raised will be used to expedite progress to a potential final investment decision for the company’s 100 per cent–owned Kambalda nickel project.
If the project gets the go-ahead, the capital raise will also fund a portion of the estimated $97 million cost of the project, as outlined in the definitive feasibility study (DFS) released in March.
Two years of planned resource extension and exploration at several prospects will also be funded.
After all that, Mincor expects to have a little left over as a contingency for project development costs, and to provide an additional working capital buffer in the case of unforeseen delays.
Mincor’s Managing Director, David Southam, says the Kambalda project is gathering speed.
“The successful completion of this capital raising will allow Mincor to maintain and even increase this momentum in the second half of this year, putting us in an enviable position with full optionality and flexibility around a final investment decision,” David said.
“The funding will give us the confidence to complete resource extension drilling during the development timeline at Cassini Main and to test the 1.1km Durkin North to Long space from underground positions. Furthermore, our regional exploration program can continue at Cassini North, Bluebush, Juno and other targets,” he added.
Upon completion of the capital raising, Mincor expects to hold cash reserves in excess of $100 million.
Alongside achieving recent milestones mapped out in the DFS, a successful capital raise will see Mincor well on track at Kambalda.
Mincor Resources closed Thursday’s session where it started at a price of 82 cents per share.
