NSL in $10m raising

Iron ore-focused NSL Consolidated has tapped investors for $10 million to fund an expansion of its Kurnool wet beneficiation plant in India.

The company issued 714 million shares at 1.4 cents each, with cornerstone investor First Samuel committing $5 million to the placement, along with institutional and high net worth investors.

Shaw and Partners and Aitken Murray Capital Partners acted as lead managers to the placement.

NSL has estimated the cost of the plant expansion at approximately $8.5 million, which includes retrofitting components of the existing plant.

“This is a tremendous outcome for NSL and our shareholders, as the company now has the requisite funding in place to complete the phase three expansion of our iron ore operations in India,” managing director Cedric Goode said.

“The company will now invest significantly towards increasing production and sales whilst improving operational standards and equipment at Kurnool to ensure long-term operational success is delivered and sustained.”

NSL has proposed a performance incentive scheme worth 110 million shares for Mr Goode, which is linked to the completion of the expansion.

Mr Goode will receive 40 per cent of the shares if the project is completed on time and on budget, with the remaining 60 per cent available if production targets are achieved.

Meanwhile, NSL has also advised that the company is proposing a consolidation of its issued capital.

The company is planning a 15-to-1 conversion, and will seek shareholder approval with a notice of meeting.

Shares in NSL were off 6.6 per cent at 1.4 cents each at 1pm AEDT.