Nickelore Ltd has cancelled its $18.3 million non-renounceable rights issue, as a result of current and widespread volatility in the stock market.
Nickelore said it could not have predicted the current turn of events in the market when it launched the offer in early December and would refund any application monies already received from shareholders pursuant to the rights issue.
The announcement comes after the West-Perth based company revised the terms of its rights issue on January 7, lowering its maximum target raising from $21.9 million to $18.3 million.
Nickelore had one new share on offer for every existing share held at an issue price of 25 cents, down from its previous offer of 30 cents per share.
The offer was not underwritten.
Nickelore, which changed its name from Halcyon Group Ltd in early December, was looking to raise funds for the development of its Canegrass Nickel Cobalt project in the north eastern Goldfields, in addition to providing working capital.
The project will include a heap leach extraction plant, with the scoping study currently underway and expected to be completed by the end of the first quarter 2008.
Nickelore said key elements of its Canegrass scoping study would continue on schedule, with the study due to be finalised by the end of March 2008.
It apologised for any inconvenience to its shareholders.
