Mirabela taps equity market again

Shares in Mirabela Nickel have been placed in a trading halt as it undertakes another capital raising to help pay for cost overruns at its Santa Rita nickel project in Brazil.

The nickel hopeful has filed a preliminary prospectus for a proposed overnight share offering, details of which are yet to be determined.

Concurrently with the offering, Mirabela has proposed to complete a private placement of up to 21.5 million shares outside of Canada.

Mirabela said funds will go towards cost overruns at Santa Rita which have reached $US28.1 million and optional capital items of $US5.8 million to enhance the operation.

Funds will also be used for pre-production costs of $US5.3 million, the recovery of a foreign exchange loss of $US5.3 million and for working capital.

The share offering is scheduled to close around August 13.

Mirabela has so far raised more than $190 million in fresh equity from investors and has been loaned $US190 million by a consortium of banks.

Shares in Mirabela last traded at $2.62.