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Poseidon SPP draws major interest

21st December 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Nickel developer Poseidon Nickel has beat its A$3-million raising target in a recently closed share purchase plan (SPP).

The SPP was announced earlier this month as part of a A$9-million capital raise to progress the restart of the Black Swan project, in Western Australia. Under the SPP, eligible shareholders were allowed to subscribe for up to A$30 000 of additional new shares in the company at a price of 3.5c each.

Poseidon on Wednesday said that the SPP had closed heavily oversubscribed, with the company receiving applications totalling some A$9-million. The board has now taken the decision to accept a total of A$6-million in applications and would issue 171.4-million new shares.

“We acknowledge that shareholders who subscribed may be disappointed by the scale back, however, we have balanced the strong SPP applications with the foreseeable capital needs of the business in the best interest of all shareholders, hence the board’s decision to take A$6-million,” said MD Peter Harold.

“The funds raised by the recent placement and the SPP will support the company with its intended restart at Black Swan with final workstreams under way to get a final investment decision during the second quarter of 2023.”

Funds from the placement will also be directed towards a 15 000 m drilling programme at Lake Johnston.

Edited by Creamer Media Reporter

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