Yesterday’s $37.8 million capital raising by Mirabela Nickel’s has been revealed as part of a plan to raise a total of $65.2 million to act as a “working capital buffer.”
The Brazil-focused miner announced that it had raised the $37.8 million through a placement of 16.4 million shares at a price of $2.30 each.
In order to raise the remaining funds, Mirabela has agreed to place 5.5 million special warrants, mainly in Canada and the US, “on a private placement basis to raise C$12.27 million.” The warrants can be converted into ordinary shares on a 1-for-1 basis.
Subject to shareholder approval, the company said a further 1.7 million shares will be placed to director related entities of Lancaster Park, while another and 400,000 will go to chairman Craig Burton.
Another $10 million will come from a share purchase plan, the company said.
Mirabela has already tapped the market for more than $300 million this year after continued cost increases in the ramp up of its flagship Santa Rita project in Brazil.