Mincor to raise $60m for Kambalda restart

IGO will lift its stake in Mincor Resources to 8 per cent as part of a $60 million capital raising that will give the David Southam-led company the cash to restart nickel mining at its shuttered Kambalda operations (reports The West Australian)
26th June 2020
Resources Rising Stars

IGO will lift its stake in Mincor Resources to 8 per cent as part of a $60 million capital raising that will give the David Southam-led company the cash to restart nickel mining at its shuttered Kambalda operations (reports The West Australian).

The price of the raising is still to be decided but it is understood it will comprise a $50 million placement and a $10m share purchase plan.

The raising will allow Mincor to boost its cash balance to $100m to reactivate its Kambalda nickel operations.

Last year the company locked in an offtake arrangement for its ore with BHP’s Nickel West.

Shares in Mincor were placed in a trading halt before the open this morning, having last changed hands for 82¢.

The stock has been on a fairly steady run higher from 40¢ since March.

Andrew Forrest’s privately owned Squadron Resources has been a buyer of Mincor stock in recent months, amassing a stake of nearly 14 per cent.

Nickel has been deemed a “future facing” commodity by BHP because of its growing use in the batteries of electric vehicles.

Last week the mining giant bought 1Mt Honeymoon Well nickel project from Norilsk Nickel.

The project lies just 50km from BHP’s Mt Keith nickel mine and is one of the biggest undeveloped nickel resources in Australia.

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