NickelX Ltd (ASX:NKL) has received firm commitments from institutional, sophisticated and professional investors to raise around $2 million, before costs, through a placement of 100 million new fully paid ordinary shares at an issue price of $0.02 per share.
Cash for Elliot Lake uranium
The plan is to channel the cash into exploration activities at the Elliot Lake Uranium Project in Ontario, Canada, to examine the company's exploration portfolio and assess new opportunities and for working capital.
The company’s new management is conducting a strategic review of its exploration portfolio and assessing other strategic opportunities to increase shareholder value.
NickelX is also floating a name change – the proposed name is Strata Minerals – to reflect its broadened strategic focus on a range of minerals including uranium, rare earths and gold.
New strategic direction
NickelX managing director Peter Woods said: “We are very pleased to have received strong demand and secured funds to support a new strategic direction for the company as it focuses on extracting value from its current uranium, rare earth and gold prospects, while assessing other value-adding opportunities.
“I’d like to thank current NickelX shareholders for their continued support and we welcome our new shareholders as we reposition the company’s strategy to growth and focus on delivering shareholder value.”
The details
The capital raise will be completed via the issue of 100 million new fully paid ordinary shares via a two-tranche placement.
NickelX will use its existing placement capacity under ASX listing rules for the issue of a total of 14,453,790 shares in Tranche 1.
The balance of 85,546,210 shares will be issued under a second tranche subject to shareholder approval at a meeting expected to be held in late August.
Directors of the company have committed to invest $80,000 as part of Tranche 2 of the placement subject to shareholder approval.
The placement issue price of A$0.02 per share represents a 16.6% discount to the last traded price of $0.024 and a 13.0% discount to the company’s 15-day volume-weighted average price (VWAP) of $0.023.
The company expects the Tranche 1 placement shares to be issued on July 24.