Mincor plans to award a contract for site clearance and box cut works at the Cassini project in Western Australia shortly as it moves towards a nickel restart.
The company completed its $35.6 million capital raising via a $30 million placement at 60 cents per share, which was oversubscribed, with major supporters including Independence Group and Squadron Resources.
This allowed Mincor to finish the December 2019 quarter with a bank balance of $56.3 million and no corporate debt, which will fund the early works at Cassini.
Mincor managing director David Southam confirmed that the company was completing a short-list of mining contract tenderers for Cassini, which it expects to finalise the two preferred parties this quarter.
Southam said the December quarter was extremely successful for Mincor, and believes that despite unstable short-term market conditions, the medium to long term outlook for the commodity is promising.
Throughout the December quarter, nickel prices finished at approximately $19,800 per tonne, dropping towards the end of 2019.
“The nickel price during the quarter remained volatile and trended down for several reasons,” Southam said.
“(These) include United States/China trade war concerns, an increase in nickel London Metal Exchange (LME) stockpiles, Indonesian laterite supply concerns and geopolitical issues.
“Notwithstanding these short-term developments, the overwhelming media to long term view for nickel remains very positive, with the continued move to high nickel content batteries for electric vehicles.”
Mincor’s nickel restart plan was boosted in the December quarter by a third successive increase in its mineral resource average nickel grade and uncovering some of its best high-grade intersections to date.
This includes a recent yield of 17.6 metres at 5 per cent nickel.
Mincor’s priority this year is to complete the definitive feasibility study for the nickel restart plan, while continuing to test the mineral resource extension opportunities at Cassini and other nearby exploration targets.