Australia’s Widgie Nickel raises $12m (US$7.9m) in placement
The funding secured by Widgie Nickel will be used to fund its Mt Edwards nickel project in Australia.
Western Australia-based mining company Widgie Nickel has secured A$12m ($7.9m) in a placement to finance its development and exploration activities.
As part of the placement, a total of 46 million shares have been issued by Widgie at A$0.26 apiece.
This marks a 1.8% discount to the stock’s five-day volume-weighted average price (VWAP), as well as a 6.9% discount to its 15-day VWAP to 17 May 2023.
Of the placement, Ascend Global Investment Fund subsidiary VIC has agreed to acquire nearly 29.5 million shares at A$0.26 per share, totalling A$7.66m.
VIC will effectively own 9.9% of the company.
In accordance with the placement, VIC will hold at least 5% of Widgie’s equity, securities or convertible interest, but it will have the first right of refusal to future debt financing.
Widgie will also facilitate VIC’s participation in future equity offers.
If Widgie plans to expand its board of directors, it will have to consider appointing a VIC representative to the board, if it holds at least 9.5% in the company.
The miner will use the funds raised from the placement to fund exploration, evaluation, ongoing project development expenditure and working capital requirements at its Mt Edwards Project.
Widgie Nickel managing director and CEO Steve Norregaard said: “We are delighted with the support for the placement and the addition of a number of new highly credentialled investors, including VIC, to the register. On behalf of the board of directors, I would like to welcome these new investors to the company and thank our existing investors for their ongoing support.
“We look forward to putting these funds to work with several exciting advancements in train, including commercialisation of our nickel and recently discovered lithium endowment and ongoing exploration activities on our highly prospective Mt Edwards project tenure.”
The Mt Edwards project was originally acquired by Neometals for its nickel and lithium reserves, but the discoveries of the magnitude of nickel subsequently helped to realign the core focus towards the metal.
Located south of Kalgoorlie in Western Australia, Mt Edwards contains 168,080 tonnes of nickel across 12 separate nickel sulphide mineral resources.
In September 2021, Neometals spun off its Mt Edwards project into a separate company, which was renamed Widgie Nickel.
Extracted Source: Mining Technology