Commodities, Finance, News, Nickel

Nickel Mines drops lucrative share purchase plan

Nickel Mines

Nickel Mines has withdrawn its share purchase plan (SPP) after price volatility prompted the London Metal Exchange (LME) to suspend nickel trading last week.

Nickel Mines is an Australian public company emerging as a low cost producer of nickel pig iron (NPI), a key ingredient in the production of stainless steel.

Nickel Mines managing director Justin Werner said the SPP’s purpose was to allow shareholders to participate in the recently-announced capital raising on the same terms as those participating in the institutional placement and the conditional placement involving Shanghai Decent.

“The targeted amount to be raised in the SPP was approximately $18 million. Applications have far exceeded this, with applications received totalling approximately $57 million,” he said.

“However, given market volatility and the retraction in the company’s share price in recent days the board of directors have agreed that it is in the best interests of shareholders to cancel the SPP effective immediately and return all applications in full.

“The proceeds of the SPP are not required for the acquisition of the 70 per cent equity interest in the Oracle nickel project.”

Last week, the LME suspended nickel trading after prices momentarily raced beyond $US100,000 ($137,404) per tonne.

“Following further unprecedented overnight increases in the three-month nickel price, the LME has made the decision to suspend trading for, at minimum, the remainder of today,” the global commodities trader stated at the time.

Nickel trading on the LME remained suspended at the time of writing, but the platform indicating trading would recommence at 8am London time on Wednesday March 16.

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