Nico Resources Raises $3.73M to Fast-Track Wingellina Nickel-Cobalt Project

Capital Raise Highlights Investor Confidence

Nico Resources Limited (ASX, NC1) has successfully closed a $3.73 million share placement, attracting firm commitments from professional and institutional investors. The placement, priced at 30 cents per share, was heavily oversubscribed, reflecting robust market confidence in the company’s flagship Wingellina nickel-cobalt project in Western Australia.

The raise will see the issue of approximately 12.4 million new shares, with settlement expected around 27 January 2026. These shares will rank equally with existing ordinary shares, ensuring new investors participate fully in the company’s future growth.

Advancing Wingellina’s Development

Proceeds from the placement are earmarked primarily for advancing exploration and development activities at Wingellina, including the commencement of an infill drilling program. This drilling is critical to refining resource estimates and supporting the next phases of project development. Additionally, funds will support general working capital requirements, ensuring operational flexibility as the company progresses.

Wingellina is recognised as a world-class oxide nickel-cobalt deposit, boasting an initial reserve of 1.56 million tonnes of contained nickel. The project’s pre-feasibility study, completed in late 2022, confirmed its status as a Tier 1 asset characterised by a long mine life, low operating costs, and strong margins. The project is capable of producing approximately 40,000 tonnes of nickel and 3,000 tonnes of cobalt annually for over four decades.

Market Pricing and Strategic Implications

The placement price represented a 9.1% discount to the recent closing price of 33 cents but was set at a 7.5% premium to the five-day volume-weighted average price (VWAP) of 27.9 cents. This pricing balance suggests a strategic approach to attract new capital while respecting existing shareholder value.

Managing Director Jonathan Shellabear emphasised the significance of the strong institutional backing, describing it as a “strong validation of the inherent value in the Wingellina Project.” He highlighted the transformational potential of the year ahead for Nico Resources, signalling confidence in both the project’s fundamentals and the company’s strategic direction.

Looking Ahead

With the capital raise complete, all eyes will be on the upcoming infill drilling results and how these might influence resource upgrades or project timelines. The company’s ability to convert exploration success into tangible development milestones will be critical in maintaining investor momentum and advancing Wingellina towards production.