Nickel Mines aims to raise A$200 million in an initial public offering and list on the Australian Securities Exchange with trading set to begin Aug. 2, The Australian Financial Review wrote June 18.
Bell Potter Securities, Nickel Mines' book runner, reportedly sent out terms of the offering to fund managers on June 18. The plan is to issue 571.4 million shares at 35 cents Australian each, according to the report.
The AFR said that the funds would be used to back expansion of the Hengjaya nickel mine in Indonesia, among other uses.
Nickel Mines, through a subsidiary, owns an 80% interest in the mine, which hosts sizable nickel resources. On its website, it pegged indicated resources at 23 million tonnes grading 1.6% nickel and inferred resources at 48 million tonnes grading 1.6% nickel using a 1.3% nickel cut-off grade.
The company signed an offtake agreement with PT Indonesia Tsingshan Stainless Steel in October 2017 to supply it with 50,000 wet tonnes per month of ore grading at least 1.6% nickel until Nov. 30.