Nickel play Mincor builds impressive $55m war chest to fund mine predevelopment

Kambalda-based Mincor has announced a $35m cap raise to fund its aggressive nickel restart strategy (reports Stockhead).
22nd November 2019
Resources Rising Stars

Kambalda-based Mincor has announced a $35m cap raise to fund its aggressive nickel restart strategy (reports Stockhead).

In August 2018, developer Mincor Resources (ASX:MCR) unveiled a maiden resource at Cassini, the first nickel deposit to be discovered in the Kambalda district for many years.

The resource has been updated three times since then. In November, it was increased to 1.254 million tonnes at 4 per cent nickel for 50,400 tonnes.

The latest round of drilling at Cassini produced several very wide, high-grade hits like 15.4m at 4.7 per cent and 12.3m at 5.1 per cent – the best from the project to date.

“The more we drill, the better it gets,” Mincor non-exec chairman Brett Lambert said earlier this month.

“Cassini is shaping up to be one of the most significant nickel deposits in the Kambalda district, which is particularly notable given this project is in its infancy.

“It took several decades to reveal the full potential of the major Kambalda nickel deposits.”

It’s just one part of Mincor’s assertive nickel restart strategy.

In March this year, it signed new ore treatment and offtake terms with BHP Nickel West, which provides a clear pathway back to production.

Two months later it purchased the celebrated Long nickel operation from Independence Group (ASX:IGO) for $9.5m, which saw the $3.5 billion miner jump on the Mincor register.

Mincor also has a pipeline of near-mine targets to run down. Mincor has budgeted ~$8m for nickel exploration in 2020, split between resource expansion projects and “emerging greenfields opportunities”.

Today, Mincor announced a $35m cap raise at a slight discount to the current share price to fund pre-production capital costs, among other things. It follows a similar $23m raise in May this year.

Proceeds will go towards Mincor’s early capital works at Cassini and Long-Durkin — like clearing, box-cut, decline, and underground development — ahead of the expected completion of the definitive feasibility study (DFS) in Q1 2020.

Existing shareholders Independence Group and Squadron committed $2m and $7.2m respectively. Once the placement is completed they will hold interests of 4.41 per cent and 6.17 per cent in Mincor.

This $35m windfall will increase Mincor’s cash position to ~$55m by the end of the year, managing director David Southam says.


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