The shortfall for Golden Mile’s entitlement offer has been picked up by new cornerstone investor Rajiv Ramnarayan, a clear endorsement of its Quicksilver nickel-cobalt project near Lake Grace, WA.

Ramnarayan, a 50% shareholder in Singapore-based commodity trading and resources company Equentia Natural Resources, acquired more than 16.2 million shares priced at 1.6c each, taking the total shares issued under the offer up to $1.2m.

A further 6.78 million shares worth $108,520 applied for by directors will be issued subject to and following shareholder approval at the upcoming extraordinary general meeting to be held on 6 June.

The 2 for 5 entitlement offer includes the issue of one free attaching option exercisable at 3.5c and expiring on 30 June 2025 for every two shares subscribed for.

Golden Mile Resources (ASX:G88) will use proceeds from the entitlement offer to advance exploration at Quicksilver and meet expenditure requirements at its other non-core projects.

“Rajiv’s extensive expertise in the Indonesian market and deep knowledge of the nickel industry makes him an ideal strategic investor for Golden Mile and is an endorsement of our Quicksilver Nickel-Cobalt Project,” chief executive officer Damon Dormer said.

Equentia Natural Resources has achieved significant success in the commodities market, principally in coal, and has established strong offtake agreements with mines located in Indonesia, South Africa, Russia, and Australia.

This success allowed ENR to successfully diversify into the nickel and battery mineral sector with investments in physical assets and mines as well as strategic investments in exploration, project development and junior mining companies.

 

Quicksilver project

The Quicksilver nickel-cobalt project near Lake Grace has an existing resource of 26Mt grading 0.64% nickel and 0.04% cobalt.

While overlooked due to it being thought of as a nickel laterite project, which would require expensive high pressure acid leach (HPAL) to develop, Golden Mile’s initial testwork has indicated that the orebody is clay-hosted.

It also demonstrated that a beneficiation using mechanical methods could not only improve the ore into a nickel-cobalt concentrate but also form an iron-chromium-nickel concentrate as a separate revenue stream.

Mining is expected to be simple given the deposit’s geometry – long with significant width and shallow – and free dig nature of the orebody, which eliminates the need for drill and blasting.

Adding further interest, recent work has uncovered the potential for the project to host rare earth elements (REE) and scandium.

Quicksilver also benefits from being located near Lake Grace, a well facilitated town with sport facilities, motels, shops, an industrial area and access to rail and four ports, which are about equal in distance.

 

 

This article was developed in collaboration with Golden Mile Resources, 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.

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