NickelSearch ready to build on Carlingup nickel and lithium growth story with $2.43 million entitlement offer
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NickelSearch will ramp up nickel exploration at its flagship Carlingup project and begin work to prove up new high priority lithium prospects just 10km from the Mt Cattlin mine, announcing plans to raise $2.43 million in a fully underwritten entitlement offer.
The offer will enable eligible shareholders to top up their stake in NIS by applying for one new share for every three shares they hold at a price of 7c a pop. It will also come with a free attaching option with a 7c exercise price.
The funds will provide NickelSearch (ASX:NIS) with the financial muscle to expand its exploration activities at Carlingup, funding RC drill programs at four high priority greenfields targets known as Serendipity, B1, Lipple and Wadley.
It will also support follow up drilling at the exciting Sexton nickel discovery, where NIS is assessing a very strong off-hole conductor identified in downhole electromagnetic surveys.
NIS will also undertake mapping at five high priority lithium target areas identified in recent multi-element analysis of previously collected soil samples.
Located just 10km from Allkem’s Mt Cattlin mine, home to 194,000t of spodumene concentrate production in FY22, the postcode is perfect for a follow up discovery.
Meanwhile, funds will also be put towards NIS’ share of a co-funded diamond drill hole supported by the WA Government’s Exploration Incentive Scheme, which will begin drilling in the December quarter.
The State Government will tip in 50% of the funds up to $220,000 for the hole’s delivery, which is seeking to follow up an EIS hole cut short over a decade ago which found strong indicators of high-grade nickel, cobalt, copper, gold and platinum group elements.
Also hosting high copper-gold fertility, the target boasted a pyrite signature analogous to Sandfire Resources’ legendary DeGrussa discovery.
“NickelSearch has an exciting pipeline of greenfield exploration targets to pursue and this capital raising enables us to proceed with the RC drilling program currently underway at Carlingup and plan for the next diamond drilling campaign to follow up the exciting nickel sulphide intersections at Sexton,” Duncan said.
“With the drilling crew currently on the ground at Ravensthorpe, we look forward to providing positive newsflow from those campaigns in the very near future.
“Alongside our nickel sulphide exploration, the company is planning for early-stage target identification and geological mapping to follow up our recent announcement regarding the prospectivity for lithium on our tenements.
“This is a pivotal time for the company as knowledge gained during our period of exploration targeting and planning is put into action, and we look forward to sharing the results when received.
“We appreciate the ongoing support of our existing shareholders and encourage all to review the offer documentation and participate in the Entitlement Offer.”
Subject to shareholder approval, underwriter Discovery Capital will also receive 34.8m unquoted options exercisable at 10c on or before April 30 next year, which if exercised could deliver another $3.4m to support greenfields drilling campaigns.
NickelSearch’s board and management including MD Nicole Duncan is getting more skin in the game by tipping in $115,000 overall.
Home to the RAV8 mine, which produced 16,100t of nickel metal at a grade of 3.45% in the early 2000s, Carlingup is one of the most advanced nickel projects in WA with total JORC resources of 155,000t of contained nickel.
This article was developed in collaboration with NickelSearch, 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.