Mincor to raise $23m

Mincor Resources has raised $18 million in a share placement and is seeking to secure an additional $5 million via a share purchase plan to facilitate the restart of its Kambalda nickel operations.

The $23 million raising follows yesterday’s announcement that the company will acquire the Long nickel mine from Independence Group as part a $9.5 million cash-and-scrip deal.

Under the share placement, $18 million worth of shares will be issued at a price of 40 cents per share, representing a 7.6 per cent discount to its five-day volume-weighted average price.

Petra Capital and Euroz acted as joint lead managers.

As announced yesterday, Independence will take up $1.5 million of the share placement, equating to a 4.2 per cent shareholding.

The share purchase plan will have the same terms as the placement.

Mincor managing director David Southam said the success of the placement and the high level of interest received from institutional investors showed that the company’s nickel restart plans were rapidly gaining momentum.

“We are pleased to welcome a number of new institutional shareholders to our register as part of the placement and also acknowledge the support received from existing sophisticated investors, which ensured that demand for the raising was strong,” he said.

“We also recognise leading Australian nickel producer, Independence Group, as a shareholder with their $1.5 million contribution to the placement.”

Shares in Mincor were up 2.2 per cent to trade at 46 cents each 3.50pm AEST.