Alliance Nickel Limited has secured $2.4 million from a 63% take-up of its $4.15 million entitlement offer, with director Jamie Sullivan underwriting a portion of the shortfall. The remaining shares are yet to be placed as the company moves forward with its NiWest project.
- Entitlement offer raised $2.4 million from 63% shareholder participation
- Director Jamie Sullivan partially underwrote and subscribed to shortfall shares
- Remaining shortfall of nearly 50 million shares yet to be placed
- New shares and underwritten shortfall shares expected to issue on 5 May
- NiWest project feasibility assumptions remain unchanged
Entitlement Offer Raises $2.4 Million Amid Partial Underwriting
Alliance Nickel Limited (ASX:AXN) has closed its entitlement offer, raising $2.4 million from eligible shareholders who took up approximately 63% of the offer. The non-renounceable offer aimed to raise $4.15 million at $0.035 per share on a basis of one new share for every 6.42 held. The shortfall, representing nearly 50 million shares worth $1.75 million, remains unplaced, leaving some uncertainty over the final capital injection.
Director Steps In to Support Shortfall
Jamie Sullivan, a director of Alliance Nickel, partially underwrote the entitlement offer and subscribed to 4.96 million shares for $173,526. He also took up an additional 4.27 million shortfall shares for $149,378, providing a critical buffer to the capital raise. These shares, alongside the new shares from shareholders, are expected to be issued on 5 May 2026. Sullivan's involvement underscores the board's commitment to funding the company's development plans.
Funding Positioned to Support NiWest Development
The funds raised will contribute to ongoing development of Alliance Nickel's flagship NiWest nickel cobalt project, which hosts one of Australia's highest-grade undeveloped nickel laterite resources. The project benefits from existing infrastructure and proximity to Glencore’s Murrin Murrin operations. Alliance recently confirmed that all material assumptions underpinning the project's Definitive Feasibility Study remain unchanged, maintaining confidence in its technical and economic viability.
This capital raise follows the company's earlier announcement of a $4.15 million entitlement offer to support capital cost optimisation at NiWest, including trials of vat leaching technology to reduce water infrastructure expenses. The offer was launched amid ongoing negotiations with Stellantis on offtake agreements and a focus on delivering low-cost, high-quality nickel and cobalt sulphate for the EV battery market, as detailed in the company's recent capital cost optimisation program.
Shortfall Placement Remains a Key Watchpoint
With nearly half of the entitlement offer still unplaced, the company faces the task of securing additional investors or alternative funding to fully realise the $4.15 million target. The placement of the remaining 49.9 million shortfall shares, valued at $1.75 million, will be critical to bolstering the company’s balance sheet as it advances NiWest. Market participants will be attentive to any announcements regarding the shortfall placement and its impact on shareholder dilution.
Bottom Line?
The partial underwriting cushions Alliance Nickel’s capital raise, but the unplaced shortfall leaves funding and dilution questions unresolved.
Questions in the middle?
- Will Alliance Nickel secure placement for the remaining shortfall shares soon?
- How might the partial underwriting influence investor confidence and share price?
- What impact could the final capital raise have on NiWest’s development timeline?