Nickel X begins trading on ASX

Nickel X has made a slow start to its first day of trading, after raising $7 million under an initial public offering to accelerate an exploration program at the company's Biranup project in Western Australia.

Perth-based Nickel X (formerly New Energy Metals) issued 35 million shares under its IPO, with the offer priced at 20 cents and led by CPS Capital Group.

On Friday, shares in Nickel X fell 8 per cent on the issue price to close at 18.5 cents.

Despite the soft start, the company is preparing to ramp up exploration at its recently acquired Biranup project, which Nickel X says contains nickel-copper targets similar to IGO’s Nova and (formerly 30 per cent-owned) Tropicana operations.

Biranup sits less than 10 kilometres from Tropicana – a joint venture between AngloGold Ashanti and (now) Regis Resources.

Nickel X managing director Matthew Gauci said the company had worked hard to compile a drill-ready project within the highly prosecutive Albany-Fraser Belt.

“The funds raised [under the IPO] place us on firm footing to advance our exploration work and commence EM surveys and drilling in one of the world’s most attractive nickel belts, while also continuing to develop a number of very interesting gold prospects,” he said.

Also on Friday, Nickel X announced it had completed its acquisition of the Biranup project from ASX-listed VRX Silica subsidiary Ventnor Gold Pty Ltd.

Nickel X is also set to purchase the Ponton nickel project (in the Albany-Fraser Belt) from Zenith Minerals subsidiary Black Dragon Energy. 

Also on the Nickel X board is chairman Jonathan Downes - a founding director of gold explorer Kaiser Reef, which listed on the ASX in February last year.