- Poseidon Nickel’s (POS) recently closed share purchase plan (SPP) has been heavily oversubscribed, receiving $13.5 million in applications
- The company originally targeted to raise $3 million and has agreed to take up $6 million in applications for the SPP which totals around 54.5 million shares
- Under the SPP, eligible shareholders were given the opportunity to purchase up to $30,000 new shares for 11 cents each
- Funds from the raise will help the company progress its Black Swan project towards a potential recommencement of operations in 2022
- Poseidon ended the day up 4.35 per cent to close at 12 cents per share
Poseidon Nickel (POS) has successfully closed its share purchase plan (SPP) which was heavily oversubscribed.
Under the SPP, eligible shareholders were given the opportunity to purchase up to $30,000 new shares for 11 cents per share.
The company originally planned to raise $3 million but ended up receiving applications totalling around $13.5 million, a massive jump from the targeted price.
As a result of this oversubscription, the board has agreed to accept $6 million in applications, this totals around 54.5 million shares.
The SPP also follows a $22 million placement announced earlier this month.
Managing Director Peter Harold said he was pleased with the SPP.
“We acknowledge that shareholders who subscribed may be disappointed by the scale back. Ultimately, balancing the strong SPP applications with the foreseeable capital needs of the business is in the best interests of all shareholders,” he said.
Funds from the raise will help the company progress its Black Swan project towards a potential recommencement of operations in 2022.
“The funds raised will be used to continue exploration activities at Golden Swan and across the Southern Terrace, undertake drilling to convert additional Silver Swan mineral resources to ore reserves, further test for extensions to the known
Silver Swan mineralisation and complete mining and production studies at Black Swan,” Mr Harold.
“Funds will also be allocated to reviewing the exploration potential of our Lake Johnston and Windarra nickel projects.”
On market close, Poseidon was up 4.35 per cent and is trading at 12 cents per share.