PERTH (miningweekly.com) – Nickel miner Mincor Resources is targeting a A$60-million capital raise to accelerate underground development at its Northern Operations, and underground exploration and resource definition at its Cassini operations, both in Western Australia.

The ASX-listed company will undertake a fully underwritten share placement to institutional, sophisticated and professional investors, raising A$55-million under its existing placement capacity.

More than 39.5-million shares will be placed at A$1.39 a share, representing a 14.4% discount to Mincor’s five-day volume weighted average share price, and a 5.1% discount to the company’s 30-day volume weighted average share price.

In addition to the fully underwritten share placement, Mincor will also undertake a share purchase plan (SPP), aimed at raising an additional A$5-million. Eligible shareholders will be able to subscribe for up to A$30 000 of additional new shares in the company, also at a price of A$1.39 a share.

The SPP will open on December 21 and close on January 20.

Mincor told shareholders that A$20-million of the proceeds from the capital raise will be used to advance development activities at the Golden Mile development, at the Northern Operations.

The company intends to bring the development of Golden Mile forward from the original date of mid-2023, fast-tracking grade control drilling and development access work, as well as continuing the existing extensional drilling programme across the Northern Operations.

Preparatory development work at Golden Mile is now scheduled to start in January, with first ore development expected in the fourth quarter of the 2023 financial year.

A further A$15-million of the capital raised will go towards accelerating underground exploration and resource definition drilling programme at Cassini.

With this programme originally forecast to commence late in the 2023 financial year given existing drill rig availability, Mincor now intends to commence Cassini drilling in late January 2023, using a third underground diamond drill rig secured recently from its existing diamond drilling contractor.

The remaining funds will be used to derisk the company’s balance sheet through the remainder of the 2023 financial year.