Mincor Resources intends to raise $50 million to accelerate activities at the Kambalda nickel project in Western Australia ahead of reaching a final investment decision this year.
Key shareholder IGO already pledged to purchase $13 million worth of new shares, helping push the capital raising to Mincor’s goal of $60 million.
This will fund further exploration activities around the Cassini Main and Cassini North targets and 1.1 kilometres of untested space between Durkin North and Long.
It will also cover two years of planned resource extension and exploration programs at the targets, and provide for development costs and working capital in the event of unforeseen delays to Kambalda’s development.
Mincor managing director David Southam said this capital raising was another important milestone to resume nickel sulphide at Kambalda, after mining being halted at the site since 2016 due to low nickel prices.
“The successful completion of this capital raising will allow Mincor to maintain and even increase momentum in the second half of this year, putting us in an enviable position with full optionality and flexibility around a final investment decision,” Southam said.
“The funding will give us the confidence to complete resource extension drilling during the development timeline at Cassini Main and to test the 1.1-kilometre Durkin North to Long space from underground positions.
“Furthermore, our regional exploration program can continue at Cassini North, Bluebush, Juno and other targets.”
According to Southam, this financial backing provides an additional buffer against any delays, which is critical as the uncertainty of the coronavirus pandemic continues to hover over Australia.
Mincor this year completed the definitive feasibility study for Cassini, signed a mining contract with Pit N Portal, completed the Cassini early works program and secured key management personnel at Cassini.