AFR: Petra Capital launches $30m Poseidon Nickel auction


Stockbroker Petra Capital is seeking buyers for about $30 million worth of Poseidon Nickel shares left over from the company’s rights issue.

In a term sheet sent to funds on Thursday morning, the broker said there was about $30 million of stock up for grabs at 5¢ a share.

It was calling for bids by 2pm on Friday.

On the block were shares left over from Poseidon Nickel’s $75 million equity raising.

The raising was split into a $68.8 million rights issue and about a $6 million placement.

The 11 for 10 rights issue was sub-underwritten by Squadron Resources, an entity related to Andrew Forrest’s Minderoo, and any shares not sold at Thursday’s auction will make their way to Squadron.

The broker said Black Mountain Metals – one of Poseidon Nickel’s other shareholders – had applied for 230 million shares in the shortfall bookbuild, which would take its stake in the company to 19.9 per cent.

Funds raised from the equity offer were to restart operations at Poseidon’s Silver Swan and Black Swan projects.

Source: The Australian Financial Review