Kalgoorlie-based nickel explorer Pioneer Nickel Ltd aims to raise over $2 million through a capital raising to advance exploration programmes at its Ravensthorpe copper-gold and Golden Ridge nickel joint venture projects.
The company today completed a placement of 8.3 million shares at 12.5c each to raise $1 million before costs, with major shareholder Jubilee Mines NL participating to maintain its current 17.4 per cent interest in the company.
Further to this, Pioneer has launched a share purchase plan offering 40,000 shares at $5000 to each registered shareholder of ordinary shares at 5pm WST on July 28, in order to raise a further $1 million.
Paterson Securities Ltd will be acting as lead manager and underwriter to the deal.
The company received clearance from the Native Title Tribunal last week to mine at Ravensthorpe's Elverdton and Mt Desmond Mines, an area which once produced 50 per cent of all copper in Western Australia. It will be the first time the area has been mined since the closure of the mines due to low copper prices in 1971.
Last month Pioneer announced a major farm-in and joint venture agreement with BHP Billiton Minerals Pty Ltd, forming the Silver Swan Northwest joint venture project, for tenements situated just north of Kalgoorlie.
The agreement gave BHP an 80 per cent interest in the tenements for an outlay of $6.75 million, with Pioneer being free-carried until a decision to mine is reached.
