Nico Raises $1.1M at 11.4% Premium to Advance Wingellina Development
Nico Resources has raised $1.1 million through a share placement priced at a premium, aiming to accelerate development of its flagship Wingellina nickel-cobalt project and support working capital needs.
- Raised $1.1 million via placement of 13.75 million shares at $0.08 each
- Placement price set at an 11.4% premium to 20-day VWAP
- Funds earmarked for Wingellina project exploration and development
- Placement executed under ASX Listing Rule 7.1 capacity
- Marketech personal Online Trading acted as lead manager
Capital Raise to Boost Wingellina Development
Nico Resources Limited (ASX, NC1) has successfully secured $1.1 million through a share placement, issuing 13.75 million fully paid ordinary shares at $0.08 each. Notably, this price reflects an 11.4% premium over the 20-day volume weighted average price, signaling investor confidence in the company’s prospects. The funds will be directed primarily towards advancing exploration and development activities at the Wingellina nickel-cobalt project in Western Australia, as well as meeting working capital requirements.
Wingellina, A Tier 1 Nickel-Cobalt Asset
Wingellina stands out as a world-class oxide-type nickel-cobalt deposit, boasting an initial reserve of 1.56 million tonnes of contained nickel. The project is capable of producing approximately 40,000 tonnes of nickel and 3,000 tonnes of cobalt annually in Mixed Hydroxide Precipitate form for at least 42 years. A pre-feasibility study completed in December 2022 confirmed Wingellina’s status as a globally significant, low-cost, long-life asset with robust operating margins.
Strategic Use of Placement Capacity
The placement was conducted under the company’s existing placement capacity as per ASX Listing Rule 7.1, allowing for a swift capital raise without the need for shareholder approval. Marketech personal Online Trading Pty Ltd acted as lead manager, facilitating the transaction and earning a fee of 5% of the amount raised. This strategic move underscores Nico’s intent to maintain momentum on the Wingellina project’s development timeline.
Looking Ahead
With the fresh capital injection, Nico Resources is well-positioned to push forward with exploration and development milestones that could unlock further value from Wingellina’s substantial nickel and cobalt resources. As demand for these critical battery metals continues to grow globally, the company’s progress will be closely watched by investors seeking exposure to the evolving clean energy supply chain.
Bottom Line?
Nico’s timely capital raise sets the stage for critical progress at Wingellina amid rising nickel-cobalt demand.
Questions in the middle?
- How will the company allocate funds between exploration, development, and working capital?
- What are the upcoming milestones and timelines for Wingellina’s project advancement?
- How might the market respond to the placement premium and future production forecasts?
