Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has completed an exceptionally oversubscribed share purchase plan (SPP), receiving valid applications for A$9 million worth of shares in a capital raise that targeted just A$3 million in funds.
Poseidon offered eligible shareholders up to A$30,000 worth of shares at a price of A$0.035 per share – the same price as the recently completed A$6 million share placement.
The SPP was so heavily oversubscribed the board could only accept two-thirds of applications, totalling A$6 million in new capital for Poseidon, taking total capital-raising proceeds to A$12 million.
POS expects to issue the 171.43 million new shares on Friday this week, December 23.
"Strong support"
“We would like to thank all those shareholders who participated in the share purchase plan for their continued and strong support of the company,” Poseidon Nickel managing director Peter Harold said.
“We acknowledge that shareholders who subscribed may be disappointed by the scale back, however, we have balanced the strong SPP applications with the foreseeable capital needs of the business in the best interests of all shareholders, hence the board’s decision to take $6 million.
“The funds raised by the recent placement and this SPP will support the company with its intended restart at Black Swan with final work streams underway to get to a final investment decision during the second quarter of 2023.”
Poseidon intends to put the funds toward:
- Resource enhancement – drilling has commenced to convert more inferred resources into the indicated category.
- Offtake – finalise a suitable offtake agreement for the concentrate.
- Project financing – select the most attractive debt provider.
- Major contracts – finalise the contractor for the plant refurbishment and mining.
- Approvals – continue work on obtaining outstanding approvals required for the restart.
- Human Resources – finalise requirements and timing for onboarding personnel.
“In addition, funds from the placement and SPP will be directed towards the 15,000-metre drill program at Lake Johnston to test the Western Ultramafic priority targets,” Harold said.