Centaurus in $75m insto raise

Centaurus Metals has garnered $75 million in funding from the likes of Sprott Group and Harmanis Holdings to pin down a definitive feasibility study for its nickel sulphide project in Brazil.

The explorer emerged from a two-day trading halt to confirm it had received firm commitments to raise the capital from a suite of institutional investors, who were offered shares at $1.16 apiece.

Existing shareholders including affiliates of global investment manager Sprott Group, McCusker Holdings, Canadian mining investment firm Dundee Goodman Merchant Partners and Harmanis Holdings got behind the rise.  

Proceeds will go towards developing Centaurus’ Jaguar nickel sulphide project in northern Brazil, which was recently determined to host an 80.6 million tonne at 0.91 per cent nickel for 730,700 tonne resource.

Centaurus has lauded the site as one of the largest undeveloped nickel finds globally.

The new capital will support a 90,000 metre drilling programme tipped for this year, pre-development and financing activities ahead of a final investment decision expected in 2023.

Centaurus managing director Darren Gordon said the raise reflected a strong broader demand for nickel.

“Nickel is an extremely valuable and very strategic metal, and yet supply globally is constrained in part because of the scarcity of major new projects coming on stream, particularly nickel sulphide projects,” Mr Gordon said in a statement.

“The strong interest in this raise reflects both the scale and quality of the Jaguar Project and its impeccable ESG credentials, combined with the clear corporate strategy we have outlined to bring it into development as quickly as possible.”

Centaurus shares were trading around $1.30 prior to the halt but have dropped some 7.4 per cent today to $1.18.