Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) is seeking to raise up to A$3.7 million via a pro-rata non-renounceable rights issue to fund the completion of soil sampling on numerous high prospective gold exploration targets at the Windarra, Lake Johnston and Black Swan projects in WA.
The company intends to apply funds towards soil sampling programs focused on promising gold targets at Windarra, Lake Johnston and Black Swan. It is intended that these programs will also cover areas prospective for nickel and lithium at Windarra and Lake Johnston respectively.
Funds raised will also be applied to shallow aircore or reverse circulation drilling programs based on further definition of gold, lithium and nickel targets following the soil sampling.
The pro rata non-renounceable rights issue will see one new share issued for every three shares held by eligible shareholders at an issue price of $0.003 per share, plus one free-attaching option to acquire a share for every three new shares applied for, to raise up to $3.7 million.
The offer is due to close at 5:00pm (WST) on Tuesday, August 20, 2024, with an ex date of August 5, 2024.
Aiming to unlock multi-commodity opportunities
Poseidon Nickel CEO Brendan Shalders said: “The funds received from the entitlement offer will allow the company to complete soil sampling programs focusing on numerous high prospective gold exploration targets at Windarra, Lake Johnston and Black Swan.
“Coincidentally these programs will also test for lithium at Lake Johnston and nickel at Windarra, presenting a more efficient use of funds.
“Funds will also be applied to maintaining our assets which continue to receive inbound interest from parties interested in utilising our processing capabilities.
“Our processing facilities present near-term development options for Poseidon, as well as companies that have mineral resources without established processing infrastructure who are proximal to us.
"We thank our shareholders for their ongoing support and look forward to potentially unlocking the multicommodity opportunities across our projects”.
A busy week of news
Today’s announcement comes amid a busy week for the company.
On Tuesday, Poseidon advised that it continues to demonstrate the greenfields potential of its three Western Australian projects, outside of their nickel resources, with ongoing exploration highlighting gold prospectivity.
Read: Poseidon Nickel gold exploration highlights greenfields potential for multiple commodities
That was followed by an announcement yesterday that the company has entered an agreement with Encore Minerals to develop the gold and nickel tailings at the Windarra Tailings Project using Draslovka’s proprietary glycine leaching technology (GLT).
Read: Poseidon Nickel to develop Windarra Tailings Project using Draslovka’s proprietary glycine leaching technology