Western AreasLtd. is looking to raise about A$60 million via a fullyunderwritten placement of up to 30.8 million shares at an issue price to bedetermined by book building at an underwritten floor price of A$1.95 per share.
The ASX-listed company said March 31 that it will also carryout a share purchase plan to raise up to A$10 million. These funds will beretained for general working capital purposes.
Macquarie Capital (Australia) Ltd. and Morgan Stanley AustraliaSecurities Ltd. will be acting as joint lead managers, underwriters and bookrunners for the placement.
Western Areas said it is looking to bolster its balancesheet and pursue growth initiatives including an accelerated and discountedpayment of A$12.6 million of the A$24.5 million due for the of the nickel complex fromGlencore Plc alongwith targeted exploration programs, project studies at Cosmos and , as well asadvance study work to pre-feasibility study at Odysseus later in 2016.
Proceeds will also be used to repay A$25 million ANZ corporatefacility, after which the company will become debt free with a cash balance ofA$61 million.
"History has shown that when nickel prices rebound,they can do so very quickly, and we want to make sure we are in a position torespond accordingly," Western Areas Managing Director Dan Lougher said.