Poseidon raises $75m, backed by Forrest

Poseidon Nickel has announced a $74.6 million capital raising, backed by Andrew Forrest’s Squadron Resources, days after US group Black Mountain Metals pulled out of a $66 million takeover proposal.

Poseidon has raised $5.8 million via a share placement at 5 cents per share, along with a full underwritten entitlement offer to raise $68.8 million at the same price.

Petra Capital acted as lead manager to the placement and underwriter to the entitlement offer.

Following the placement, Squadron, which is part of the Minderoo Group, will increase its stake in Poseidon to 18 per cent.

Mr Forrest chairs Squadron, which lists its investments as Poseidon and uranium-focused Vimy Resources. 

Squadron is also sub-underwriting the entitlement offer.

Poseidon said the funds would be used to restart the company’s Silver Swan and Black Swan mines and  bring the Black Swan processing plant back into production.

“We are delighted by the response to the capital raising and welcome Squadron Resources’ support,” chairman Chris Indermaur said.

“Funds raised from the placement and entitlement offer will enable the company to bring the Black Swan and Silver Swan mines and processing plant back into production.”

The news comes after Black Mountain proposed a $66 million takeover last week, before withdrawing its offer after Poseidon indicated it was going ahead with a capital raising.