07/09/2021 - 11:30

Mincor raises $60m for Cassini camp

07/09/2021 - 11:30

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Mincor Resources has secured funds to build an accommodation camp for its proposed Cassini nickel operation near Kambalda.

Mincor has raised funds to build an accommodation camp near its proposed Cassini mine. Photo: Mincor Resources

Mincor Resources has secured funds to build an accommodation camp for its proposed Cassini nickel operation near Kambalda.

The $60 million placement was priced at $1.28 per share and included a $30 million investment from Global Natural Resource Fund.

Mincor is seeking to raise a further $5 million from a share purchase plan, priced on the same terms.

The capital raising is expected to increase Mincor’s balance sheet to almost $110 million.

Managing director David Southam said about $15 million in proceeds would go towards the construction of an accommodation camp, located about 10 kilometres from Cassini, as well as associated infrastructure and power.

A further $15 million will go towards regional exploration.

“This is consistent with our view that Cassini will be a long-term operation that requires appropriate long-term infrastructure,” Mr Southam said.

“It will also eliminate the need for us to continue to use a third-party operated camp in Kambalda for Cassini operations, reduce commute times, and provide important health and safety benefits for our workforce – ensuring we can continue to attract the best people to work for us.”

The proceeds will also replace a $55 million syndicated loan with BNP Paribas and Société Générale with a $30 million revolving credit facility, solely with BNP Paribas.

“The RCF not only provides savings and efficiency, but a covenant-light capital management structure which can be utilised to assist running our business in the long term,” Mr Southam said.

He said the capital raising strengthened and derisked Mincor’s balance sheet.

Euroz Hartleys and Aitken Murray Capital Partners are acting as joint lead managers to the placement, while Sternship Advisers is acting as financial to Mincor and Allens as legal counsel.

Shares in Mincor were down 8.3 per cent at 12:52pm AEST to trade at $1.32.

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