Nickel Industries to raise $628 million
Nickel Industries said today it plans to raise A$943 million (US$628 million) via a conditional 19.99% placement of the company's shares to United Tractors, through its subsidiary PT Danusa Tambang Nusantara.
The proposed placement price at A$1.10, represents a 27.2% premium to Nickel Industries last traded share price on June 8, 2023.
United Tractors is a large, Indonesian conglomerate with interests in mining and mining services.
The funds would be used to advance Nickel Industries' ENC project.
"Injection of capital and reduction in Nickel Industries’ capital expenditure commitment on the ENC Project positions the company strongly for growth with no further equity issuance expected by Nickel Industries to fund the ENC Project," wrote Nickel Industries in an investor presentation.