Mirabela launches $120m raising plan

Mirabela Nickel has launched a $120 million capital raising, to boost the company’s coffers after its stocks plunged to a near all-time lows due to tough conditions in the nickel market.

The company said it would raise the funds through a $20 million placement priced at 40 cents per share, to investment house Resource Capital fund, and a $100 million, eight-for-13 share offer to existing shareholders, priced at 30 cents per share.

Resource Capital Fund said it would underwrite the share offer to a maximum of $40 million.

Macquarie Capital will act as lead manager and bookrunner to the offer.

Mirabela yesterday announced a $US27.5 million quarterly loss, after being hit by a sharply declining nickel price and a production drop of 16 per cent at its Santa Rita nickel mine in Brazil.

The company’s stock has been in a trading halt on the ASX today, having last traded at 34 cents.

Mirabela shares hit their lowest point since late 2004 last week, trading at 30 cents on May 9.