Australia’s Nickel Industries said on Friday it planned to raise A$943 million ($633.32 million) and had executed an agreement to reduce its investment in the Excelsior Nickel Cobalt (ENC) project in Indonesia.
Under the latest placement, the company will issue about 20% of its shares to PT Danusa Tambang Nusantara, a subsidiary of Indonesia’s PT United Tractors Tbk.
The placement will be directed towards doubling production of the ENC Project via Stage 2 Expansion, the company said in a statement.
The Sydney-based miner has been working towards developing nickel for batteries, with it raising $471 million capital in January to fund its acquisition of several nickel projects in Indonesia.
“The acquisition of a strategic minority stake in Nickel Industries is another important step in the diversification of our business,” United Tractors president director Frans Kesuma said.
The latest placement will be carried out at an issue price of A$1.10 per share, representing a premium of 27.2% to the Nickel Industries stock’s last close on June 8.
($1 = 1.4890 Australian dollars)
(By Poonam Behura; Editing by Rashmi Aich)