Local business Nickel X is planning to raise $5 million from an IPO, which will be used to explore its Western Australian projects.
Local business Nickel X is planning to raise $5 million from an initial public offering to explore its Western Australian projects.
Established in 2019, the company is led by managing director Matt Gauci and non-executive chairman Jonathan Downes.
It has primarily focused on raising seed capital to fund its activities and explore acquisition opportunities related to nickel, copper and cobalt.
In its prospectus, Mr Downes said an unprecedented shift in the demand for nickel was driven by a combination of steel sector growth (nickel’s traditional market) and the emerging new energy sector. Nickel is a component of lithium-ion batteries, which are used in electric vehicles.
Nickel X recently entered into agreements to acquire two projects in the Albany Fraser Range (Biranup and Ponton), which are considered to be prospective for nickel and gold mineralisation.
Mr Downes said the area was one of the most sought-after mineral districts in WA, in light of recent discoveries.
The Biranup project sits less than 10 kilometres from IGO's Tropicana goldmine and will be Nickel X's initial focus, with about $2.8 million in IPO funds allocated towards exploration.
The company will issue 25 million shares through the IPO, priced at 20 cents each. It opens on March 24 and closes on April 9, with an ASX listing planned for April 23.
CPS Capital Group is acting as lead manager to the offer.