Poseidon Nickel has received firm commitments from professional and sophisticated investors for a placement to raise $6m.

Poseidon Nickel (ASX:POS) has successfully attracted a fresh capital injection of $6m with the support of a number of new institutional investors.

The placement, which is being done at 2 cents per share, was led by Petra Capital and Morgans Corporate.

Poseidon is now well funded to undertake exploration drilling at both Black Swan and Lake Johnston and further confirmatory metallurgical test work on the open pit disseminated ore for the Black Swan restart.

The funds will also be used for various activities relating to the Black Swan restart including offtake and debt financing negotiations, securing accommodation in Kalgoorlie, completion of the prefeasibility study on the expansion project, remediation work on the Lake Johnston tailings facility (dust management) and care and maintenance costs.

“We are pleased with the support for the placement and welcome a number of new institutional investors to the register,” managing director Peter Harold said.

“We look forward to drill testing the EM target near the Silver Swan decline and the Western Ultramafic at Lake Johnston and continuing the workstreams relating to the restart of Black Swan.”

Drill rigs have been secured for both the exploration program on Target 5 near the Silver Swan decline and to obtain drill core for the metallurgical testwork program.

Both rigs are scheduled to arrive on site this month.

Previous exploration at Black Swan identified electromagnetic anomalies near the high-grade Silver Swan channel, which provide high priority targets for drill testing.

The Black Swan resource currently sits at 26.3Mt at 0.72% for 189,000t of contained nickel, of which 118,000t is in the higher confidence measured and indicated categories.

This follows a nearly 50% boost to the higher confidence measured and indicated resources in early June.

The recent substantial increase in measured and indicated resources means there is a lot more nickel for Poseidon to convert to reserves – the estimates of nickel in the ground ready to be mined.

At Lake Johnston, an initial drill program identified a potential open-ended channel up to 400m wide at Maggie Hays West which will be the focus of follow-up drilling.

Poseidon plans to drill test six additional targets along the 14km strike later this year.

The recent exploration success and new targets identified highlights the significant potential to grow the resource base.

 

 

 

This article was developed in collaboration with Poseidon Nickel, 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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