Poseidon Nickel (ASX:POS) has secured a bridge loan and an underwriting from interests associated with Andrew Forrest for an equity raising for development of the Windarra Nickel Project.
With the Definitive Feasibility study (DFS) underway at Windarra, Poseidon has turned its attention to finance the nickel project into production in 2013.
Major international banks are negotiating with Poseidon for a debt and working capital facility.
An equity raising of $20 million by way of a rights issue at $0.10 per share seeks to raise the equity component of the project financing.
The rights issue will be fully underwritten by Forrest Family Investments Pty Ltd which is controlled by the company’s chairman, Andrew Forrest.
Poseidon has also entered into an unsecured Bridge Loan of $8,000,000 with Forrest Family Investments Pty Ltd. This loan will fund Poseidon’s current technical and funding activities as well as undertaking risk reduction activities for the project itself.
An Independent Technical expert is currently reviewing the Definitive Feasibility study for the Windarra Nickel Project.
The Windarra Nickel Project involves a re-commissioning of the Mt Windarra underground mine; underground mining of the Cerberus ore body and construction of a new 700,000 tonne per annum nickel concentrate flotation plant to take ore from both mines.
In addition, the company will reprocess stock piled gold tailings with an average probable reserve grade of circa 0.71 grammes/tonne for an initial period of 3+ years.