Investors back Metal Hawk’s $2.4m raising to accelerate nickel exploration
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Investors have demonstrated their support for Metal Hawk’s exploration activities at the Berehaven nickel project near Kalgoorlie by opening their wallets.
The company has received firm commitments from new and existing institutional and sophisticated investors for a $2.4m placement of shares priced at 45c each, an 8.2% discount to its last traded price on 5 October.
As a further show of confidence, major shareholder and established nickel miner Western Areas (ASX:WSA) also chose to participate in the placement to maintain its 6.6% interest in the company.
Proceeds from the placement will be used to accelerate Metal Hawk’s (ASX:MHK) drilling at Berehaven where it recently struck high-grade massive nickel sulphides at the Commodore prospect.
Reverse circulation drilling at the prospect just 5km north of the previously producing Blair Nickel Mine returned up to 5.89% nickel with geochemistry work indicating that there could be more nickel sulphides at depth.
“We’ve had a huge level of support for this raising which enables us to aggressively ramp up exploration drilling at Commodore,” managing director Will Belbin said.
“We look forward to following up the successful maiden RC campaign with deeper diamond drilling and downhole electromagnetics to get a better grasp on the project’s true potential.”
Berehaven is a new komatiite-hosted massive nickel sulphide discovery just 20km east of Kalgoorlie.
Despite its proximity to the Blair nickel mine, the recently consolidated 90sqkm project has received limited historical exploration for the battery metal, a fact that offers tremendous upside for Metal Hawk in light of its recent drilling.
The company’s second hole had intersected 9m of gossanous weathered ultramafic grading 0.31% nickel and 185 parts per million copper from a depth of 135m before striking a 1m zone from 144m grading 5.89% nickel at the interpreted basal contact with footwall felsic rocks.
Downhole electromagnetic work subsequently identified a conductive target about 120m below the extent of Metal Hawk’s RC drilling.
Diamond drilling is planned to test the target conductive plate CMA_01 and DHEM will be carried out from this deeper drilling to better define and constrain the conductor.
This article was developed in collaboration with Metal Hawk, 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.