PERTH (miningweekly.com) – ASX-listed Nickel Mines has completed a $150-million issuance of senior secured notes, which will mature in April 2024.
The company this week told shareholders that the funds from the note issue would be used for working capital and general corporate purposes, and to bolster Nickel Mines’ treasury.
“This tap issue completes the inaugural note issuance initiated by the company in April 2021,” said MD and CFO Peter Nightingale.
“While the company’s existing cash reserves and budgeted cash flows meet the $210-million funding requirement to increase its ownership of the Angel Nickel project, which will more than double the company’s nameplate nickel production capacity after commissioning in 2022, from 50% already owned to 80%, this tap allows the company to maintain a healthy treasury balance.
“Further, the company continues to be very conservatively geared with a gross debt ratio of only 1.7 times the company’s attributable earnings before interest, tax, depreciation and amortisation for past year, well positioning the company to manage potential future opportunities.”
The new notes will be consolidated with the existing notes to form a $325-million single series of notes.