21/11/2019 - 13:26

Mincor to raise $35m

21/11/2019 - 13:26

Bookmark

Save articles for future reference.

Perth-based Mincor Resources has received commitments to raise $30 million through a placement, backed by major shareholders Andrew Forrest and Independence Group, and is looking to raise a further $5 million through a share purchase plan.

Mincor to raise $35m
The proceeds will be used to fund early capital works at Mincor's nickel mines near Kalgoorlie.

Perth-based Mincor Resources has received commitments to raise $30 million through a placement, backed by major shareholders Andrew Forrest and Independence Group, and is looking to raise a further $5 million through a share purchase plan.

The company said the proceeds would fund early capital works at its Cassini and Long-Durkin nickel mines in Kambalda, near Kalgoorlie, ahead of a definitive feasibility study early next year.

Mincor said the capital raised would also strengthen its balance sheet and drive nickel exploration programs in 2020, for which the company has budgeted around $8 million.

Under the placement, Mincor will issue 50 million shares at 60 cents per share, with Euroz Securities and Petra Capital acting as joint lead managers and Gilbert + Tobin acting as legal advisors to the offer.

The share purchase plan will be offered on the same terms as the placement.

Existing shareholders Squadron Resources, led by Mr Forrest, and IGO have committed $7.2 million and $2 million respectively.

Mincor Resources managing director David Southam thanked the companies for their ongoing support.

“With a significantly strengthened balance sheet, we will have the capacity to commit to important terms of pre-production capital expenditure before we complete the DFS,” Mr Southam said.

“We will also be in a much stronger position to negotiate a competitive project funding package and expect to be in a position to move seamlessly from DFS completion through to a formal decision to mine without delay, allowing us to capitalise as quickly as possible on the strong nickel market environment.”

Shares in Mincor Resources were down 7.69 per cent to trade at 60 cents per share, as at 3:30pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options