NICKEL company Sirius Resources has raised $7.6 million through a share placement to fast track drilling at its Nova discovery in WA.
The placement of 10 million shares was made at a price of $0.76 per share.
This represented a 13.7 per cent discount to the five-day volume weighted average price (VWAP) of Sirius and a 1.5 per cent premium to the 10-day VWAP.
The newly placed shares represent 6.6 per cent of the issued capital of the company.
Sirius managing director Mark Bennett said the money would ensure the company was “well funded for an aggressive exploration campaign over coming months whilst avoiding unnecessary dilution”.
“We are delighted with the overwhelming support for the placement, which will see the introduction of a number of high-quality domestic and international institutional investors onto our share register,” he said.
The Nova discovery is within the Fraser Range project, a 70/30 joint venture between Sirius and the its largest shareholder, Mark Creasy. Fraser Range covers more
than 150km strike extent of the Albany-Fraser mobile belt on the southeast margin of the Yilgarn Craton.
Exploration at the Nova discovery has advanced rapidly since drilling intersected 4m grading 3.8 per cent nickel and 1.42 per cent copper in late July.
Commenting on the exploration results last month, Mr Bennett said the company had only tested a “small fraction of the target” but had been encouraged by the results so far.
“Wide-spaced drilling to date at the upper end of the large electromagnetic conductor has confirmed that the geophysics is highlighting extensive sulfide mineralisation at Nova,” he said.
He said that based on the mineralisation intersected to date, the Nova deposit could be a very large massive nickel-copper-sulfide deposit.