Western Australian mineral resource company Sirius Resources plans to raise A$44m ($46.4m) through a share placement to domestic and international investors, with assistance from its corporate advisor Hartleys.
The placement of 22 million shares amounts to a total of 11.5% of the issued capital of the company at a cost of A$2 ($2.1) a share.
The share price represents a 7.8% discount to the last closing price of A$2.17 ($2.28) a share, with minimal dilution to shareholders.
Following the placement, the company will have a strong debt-free balance sheet of over A$60m ($63.26), Sirius said.
Proceeds from the funds will advance various projects of Sirius including drilling the Nova nickel-copper deposit to establish an indicated resource, advancing other targets in the Fraser Range region, initiating drilling of gold targets at the Polar Bear project and concluding a definitive feasibility study.
Funds, besides serving general working capital purposes, will also fast track the drilling of other targets at the Eye prospect, such as conductor 3, the Tethys prospect, the IP corridor and the prospective basal contact.
Sirius managing director Mark Bennett noted that the company now has a balance sheet that enables further exploration of the Nova nickel-copper deposit.
"We are now fully funded for the entire resource definition and feasibility process through to a potential future project financing decision.
"It is greatly satisfying to have positioned the company in this way in just four months from discovery and, importantly, with only two relatively modest placements totalling 32 million new shares," Bennett said.
Image: With funding, Sirius will commence drilling at Polar Bear project. Photo: Sirius Resources.