$2m placement to fuel NickelX’s nickel exploration programs

NickelX has received a show of support from new and existing shareholders who backed a $2.05m placement to accelerate drilling at the Cosmos South nickel project.

The placement of 13.67 million shares was priced at 15c each with placement participants to receive one option exercisable at 20c and expiring in two years time for every two shares subscribed.

Proceeds will be used to accelerate NickelX’s (ASX:NKL) maiden 1,500m diamond drilling program at Cosmos South in the highly prospective Wiluna greenstone belt and to fund a geological and geophysical program at the Dalwallinu project in the emerging West Yilgarn province.

It also intends to complete a loyalty option offer to existing shareholders of one option for every two shares held at an issue price of 0.5c per option. Each option will be exercisable at 20c on or before two years from the date of issue.

“NickelX is embarking on two accelerated exploration programs commencing with our Daimond Drilling Program at Cosmos South and soon to be followed by our infill soil sampling and geophysical programs at Dalwallinu,” managing director Matt Gauci said.

High-impact exploration

The drill program at Cosmos South – located just 10km south of IGO’s Cosmos Nickel Operations – targets fixed loop electromagnetic (FLEM) and moving loop electromagnetic (MLEM) conductors that are coincident with strong magnetic features and may be prospective for nickel sulphide mineralisation.

These conductors have been modelled to commence at a vertical depth of 80m, estimated to comprise a strike length of 565m and depth extent of 850m with a time constant of 700ms and modelled conductance of 11,300 Siemens.

Over at Dalwallinu, the sampling and geophysical programs will help determine if the project hosts a new Julimar-style nickel, copper and platinum group elements discovery.

The top target, D1, has already returned highly anomalous assays from surface of 362-674ppm nickel, 201-349ppm copper and more than 49ppb palladium and platinum.

This article was developed in collaboration with NickelX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.