Albidon to raise $46.9m through placement

West Perth-based mineral explorer Albidon Ltd will raise around $46.9 million through a placement to fund further work on its Munali Nickel Project in Zambia.

The Royal Bank of Canada and Numis Securities Ltd have together subscribed for 30.9 million shares at a weighted average price of $1.20 each, to be distributed to institutional clients in Australia, Asia and the United Kingdom.

A further 8.2 million shares will be distributed by Albidon to selected investors.

The company raised $13.4 million in June from UK and Australian investors for the Munali project, distributing 14.1 million new ordinary shares at a price of 95 cents each.

Albidon announced plans today to provide the balance of the required project funding by debt, as well as retaining a modest cash reserve for working capital purposes.