Poseidon Nickel has brought in $6 million to progress exploration drilling and development activities at its flagship nickel projects, Black Swan and Lake Johnston, in Western Australia.
The placement price of $0.02 per share represents a 23.1 per cent discount to the last closing price and a 23.2 per cent discount to the five-day volume weighted average trading price to August 2.
The placement is expected to settle on August 10, with 297.5 million shares expected to be selected on August 11 under Poseidon Nickel’s placement capacity.
Besides progressing exploration drilling and development activities at Black Swan and Lake Johnston, Poseidon Nickel said the funds raised from the placement will also be applied further confirmatory metallurgical test work on the open pit disseminated ore for the restart of Black Swan, and to various activities relating to the project’s restart, such as:
- offtake and debt financing negotiations
- securing accommodation in Kalgoorlie, WA
- completion of the pre-feasibility study on the Black Swan expansion project
- remediation work on the Lake Johnston tailings facility (dust management)
- care and maintenance costs.
Additionally, drill rigs have been secured for the exploration program on Target 5 near the Silver Swan decline and to obtain drill core for the metallurgical test work program at Black Swan. Both rigs are expected to arrive on site during August 2023.
“We are pleased with the support for the placement and welcome a number of new institutional investors to the register. We look forward to drill testing the EM target near the Silver Swan decline and the Western Ultramafic at Lake Johnston and continuing the workstreams relating to the restart of Black Swan,” Poseidon Nickel chief executive officer Peter Harold said.