Mirabela taps market for $117m

Mirabela Nickel plans to raise a further $16.5 million after securing agreements to raise more than $100 million to fund cost overruns at its Santa Rita nickel project in Brazil.

The company said it has entered into an underwriting agreement with a syndicate of brokers for the issue of 21.5 million shares at $C2.10 each to raise $C45.15 million ($A50.5 million).

Meanwhile Mirabela conducted a placement of an additional 21.5 million shares in Australia at $2.35 to raise $50.25 million. The placement was led by Macquarie Capital Advisers and Argonaut Securities.

Additionally, the company said it intends to complete a further private placement of up to 7 million shares at $2.35, raising $16.5 million.

The funds will go towards cost overruns at Santa Rita which have reached $US28.1 million and optional capital items of $US5.8 million to enhance the operation.

Funds will also be used for pre-production costs of $US5.3 million, the recovery of a foreign exchange loss of $US5.3 million and for working capital.

Shares in Mirabela were down five cents to $2.57 at 13:25 AEST.