The Chief Executive of Mirabela Nickel Ltd, Ian Purdy said that the company is looking forward to raising $148 million for growth.
The Perth based mining company and owner of the Bahia, Brazil's Santa Rita nickel sulphide mine is planning to raise $US135 million through an institutional share placement. A further $US7 million will be raised through a share placement to company directors and about $US10 million will be obtained through a share purchase plan.
Out of the funds thus raised $US40 million will be used to expand the Santa Rita plant. It will then produce above 7 mega tonnes of nickel in concentrate each year. It is estimated to produce 23,000 to 25,000 tonnes of nickel in concentrate per annum.
A part of the funds raised will be used to make an unconditional placement of ordinary shares to settle on the ASX and a placement of shares requiring shareholder approval on the ASX.
As of now the company has priced its institutional bookbuild at $US165 million at $1.60 per share. The price is said to represent an 8.9 % discount to the company’s 5 day volume weighted average price on the ASX.
Santa Rita Operations