Western Australian nickel producer Sally Malay Mining Ltd has announced a $20 million capital raising as part of a 10-year plan to achieve an increase in nickel resource/reserve base to 15,000 tonnes per annum.
Western Australian nickel producer Sally Malay Mining Ltd has announced a $20 million capital raising as part of a 10-year plan to achieve an increase in nickel resource/reserve base to 15,000 tonnes per annum.
The capital raising, to be managed by Argonaut Securities Pty Ltd, will be via a private placement of 16 million shares at $1.25 each.
The placement is being and made to a number of local and overseas based institutional and sophisticated investors, most of whom are already shareholders in the company.
Sally Malay will use the funds to accelerate exploration activities and project development studies with the aim of fulfilling its nickel production goal of '10 years at 15,000tpa'.
Existing shareholders will be able to participate in an equity raising via a share purchase plan, where existing shareholder will be able to purchase up to $5,000 of Sally Malay shares at a price discount to the market price.
Details of the proposed SPP will be announced shortly and is subject to the company obtaining approval from the ASX.
Details of the proposed use of the capital raising, and the company's 10 year plan are outlined below.
PLANNED USE OF PLACEMENT FUNDS
Kimberley Exploration/Additional Production $Million
* Sally Malay Main Zone drill out 1.5
* Sally Malay Deeps drilling 2.0
* Copernicus Open Pit Development (assume 100%) 5.0
* Copernicus Deep Drilling 2.0
* Corkwood/Wills Creek 0.5
* Panton PGM Feasibility 1.0
Lanfranchi Exploration/Additional Production
* Schmitz Extension development 2.0
* GeoFerret/Northern Dome Exploration 2.0
* Winner Development 2.0
* Low Grade Orebodies Studies 1.0
Cost of raising 1.0
TOTAL: 20.0
Share Purchase Plan
* Working capital/debt reduction TBA
SUMMARY - 10 YEARS @ 15,000tpa Ni Eq.
Kimberley
* Maximise throughput & recoveries of Sally Plant
* Increase resource base in Kimberley (Sally Malay, Copernicus, etc)
* Possibility of adding PGMs production from 2008
* Target - 1Million tpa,10,000tpa Ni + Cu & Co & PGMs, 10 years life
Lanfranchi
* Increase Ni production
* Develop Schmitz, Winner, low grade deposits
* Increase resource base - Northern Dome, down dip exploration
* Target - +250,000tpa, +5,000tpa Ni, +3 years life
Corporate
* Reduce debt, manage costs, pay dividends
GOALS
* unlock the full potential of our projects
* + 10 Years at +15,000tpa Ni Eq. (ie Ni+Cu+Co+PGMs) production
* Build a diversified mining house
THE FULL MEDIA RELEASE APPEARS BELOW.
$20M CAPITAL RAISING TO BUILD A TEN YEAR BUSINESSTARGETING PLUS 15,000T NICKEL PER YEAR
Private placement of 16million shares at $1.25 per share to raise $20million to be made to institutional investors
Funds to be used to bring forward exploration activities and project development studies on Company's projects
Company targeting an increase in resource/reserve base to fulfill the "10 years at 15,000tpa Ni Plan"
Existing shareholders will be able to participate via a Share Purchase Plan
CAPITAL RAISING TO RAISE $20 MILLION
Sally Malay Mining Limited (ASX Code: SMY) ("Sally Malay") is pleased to announce that its placement manager
has received commitments from institutional and sophisticated investors for the placement of 16 million new fully
paid ordinary shares at $1.25 per share, to raise $20 million, before costs. Once issued, the shares will rank pari
passu with the existing ordinary shares on issue. No shareholder approval is required for this issue and the funds
raised from the placement will be used on various projects aimed at fulfilling the "10 yeas at 15,000tpa Nickel
Plan".
The placement is being managed by Argonaut Securities Pty Ltd and made to a number of local and overseas based
institutional and sophisticated investors, most of whom are already shareholders in the Company.
TEN YEARS AT 15,000 TONNES PER ANNUM NICKEL
The Company will use the funds to accelerate exploration activities and project development studies with the aim of
fulfilling the 10 years at 15,000tpa Ni equivalent production plan. More details of the 10 years at 15,000tpa Nickel
Plan to be announced shortly.
SHARE PURCHASE PLAN
The Company wishes to reward existing shareholders for their ongoing support and proposes to give them an
opportunity to participate in an equity raising via a Share Purchase Plan ("SPP") where all existing shareholder will be
able to purchase up to $5,000 worth of shares in the Company at a discount to market, expected to be at close to the
placement price. The details of the proposed SPP will be announced shortly and is subject to the Company obtaining a
required waiver from the ASX to listing rule 10.11.
PLANNED USE OF PLACEMENT FUNDS
Kimberley Exploration/Additional Production $Million
* Sally Malay Main Zone drill out 1.5
* Sally Malay Deeps drilling 2.0
* Copernicus Open Pit Development (assume 100%) 5.0
* Copernicus Deep Drilling 2.0
* Corkwood/Wills Creek 0.5
* Panton PGM Feasibility 1.0
Lanfranchi Exploration/Additional Production
* Schmitz Extension development 2.0
* GeoFerret/Northern Dome Exploration 2.0
* Winner Development 2.0
* Low Grade Orebodies Studies 1.0
Cost of raising 1.0
TOTAL: 20.0
Share Purchase Plan
* Working capital/debt reduction TBA
SUMMARY - 10 YEARS @ 15,000tpa Ni Eq.
Kimberley
* Maximise throughput & recoveries of Sally Plant
* Increase resource base in Kimberley (Sally Malay, Copernicus, etc)
* Possibility of adding PGMs production from 2008
* Target - 1Million tpa,10,000tpa Ni + Cu & Co & PGMs, 10 years life
Lanfranchi
* Increase Ni production
* Develop Schmitz, Winner, low grade deposits
* Increase resource base - Northern Dome, down dip exploration
* Target - +250,000tpa, +5,000tpa Ni, +3 years life
Corporate
* Reduce debt, manage costs, pay dividends
GOALS
* unlock the full potential of our projects
* + 10 Years at +15,000tpa Ni Eq. (ie Ni+Cu+Co+PGMs) production
* Build a diversified mining house
