Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF, FRA:NYG1) has launched a Share Purchase Plan (SPP) to raise a maximum of $3 million to follow-up a strongly supported placement to sophisticated, institutional and professional investors that raised $22 million.
The company received firm commitments for the placement announced on August 2 of 200 million fully paid ordinary shares at a price of $0.11 per share.
In the SPP eligible shareholders can apply for a maximum of $30,000 and a minimum of $2,000 worth of shares.
The issue price of $0.11 under the plan will be at a discount of 18.7% to the volume-weighted average market price of the shares over the last five trading days on which sales in the shares were recorded prior to the date the Plan was announced.
Closing date for the SPP is Wednesday, August 25, with results announced on Monday, August 30 and shares issued on Wednesday, September 1.
Should Poseidon raise the full amount under the SPP, total funds raised of $25 million through the placement and SPP will be used for:
- Exploration drilling at Golden Swan to explore the Southern Terrace and parallel structures;
- Drilling at Silver Swan to convert existing mineral resources to ore reserves;
- Undertaking mining and production studies to consider the potential recommencement of operations at Black Swan;
- The review of exploration and development potential of Lake Johnston and Windarra; and
- General working capital.
Poseidon does not intend to accept applications in excess of $3 million under the SPP and depending on applications received, may undertake a scale back so that not more than that amount is raised.
Poseidon has traded up to 9.6% higher today to $0.115.
About Poseidon
Poseidon is a nickel sulphide exploration and development company with three projects within a radius of 300 kilometres from Kalgoorlie in the Goldfields region of Western Australia and a resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold.