Sirius raises $83m in share placement

Sirius Resources has raised around $83.5 million through a share placement as it works towards the development of its Nova-Bollinger project.

Sirius will issue around 34 million shares at $2.44 per share to domestic and international institutional and sophisticated investors.

Hartleys will act as broker to the offer.

The funds will be used to fast-track exploration at a number of sites and for development costs at its Nova-Bollinger nickel prospect.

The company released a scoping study for the project last month confirming that it could be developed at relatively low risk.

Sirius expects the mine to cost $471 million to take to first production and is targeting construction for June next year.

"Following completion of the placement Sirius will have an exceptionally strong balance sheet, enabling the company to aggressively explore the new targets around the Nova-Bollinger nickel-copper project, to complete the feasibility study and to move into the project development stage," Sirius managing director Mark Bennett said.

"We are pleased with the overwhelming demand and support for the placement from a range of high quality domestic and international institutional investors."

Sirius shares entered a trading halt ahead of the announcement and last traded at $2.55.