NickelSearch Ltd (ASX:NIS) has kicked off a fully underwritten $2.4 million non-renounceable pro-rata entitlement offer to fund its nickel and lithium exploration projects in Western Australia.The entitlement offer is made on the basis of one new share for every three shares held by eligible shareholders on the record date of May 11, 2023, at a price of $0.070 per new share.
Participants will receive one free attaching option for every new share subscribed for under the entitlement offer, with an exercise price of $0.070 and an expiry date of November 30, 2023, providing up to an additional $2.43 million if exercised.
Looking ahead, funds will be used to fund the RC drill programs underway at four high-priority greenfields exploration targets and follow-up drilling at the recent Sexton nickel sulphide discovery, where downhole electromagnetic surveys have identified a very strong off-hole conductor.
“Exciting pipeline”
NickelSearch managing director Nicole Duncan said: “NickelSearch has an exciting pipeline of greenfield exploration targets to pursue and this capital raising enables us to proceed with the RC drilling program currently underway at Carlingup and plan for the next diamond drilling campaign to follow up the exciting nickel sulphide intersections at Sexton.
“With the drilling crew currently on the ground at Ravensthorpe, we look forward to providing positive newsflow from those campaigns in the very near future.
“Alongside our nickel sulphide exploration, the company is planning for early-stage target identification and geological mapping to follow up our recent announcement regarding the prospectivity for lithium on our tenements.
“This is a pivotal time for the company as knowledge gained during our period of exploration targeting and planning is put into action, and we look forward to sharing the results when received.
"We appreciate the ongoing support of our existing shareholders and encourage all to review the offer documentation and participate in the entitlement offer.”
Use of funds
Funds will be used for high-impact exploration across the Carlingup Nickel Project including RC drill programs underway at four high-priority greenfields nickel sulphide targets.
The company will undertake detailed mapping and rock-chip sampling across the five high-priority lithium target areas within Carlingup, recently identified through the results of multi-element analysis of previously completed soil sampling.
RC drilling is ongoing at Carlingup and is expected to provide solid near-term newsflow.
NIS will also undertake early exploration at the newly defined high-priority lithium target areas and diamond drilling to test the strong electromagnetic conductor at the Sexton nickel sulphide discovery.