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Date: May 16 2012
MIRABELA Nickel, the Australian miner whose price plunged 30 per cent in a trading frenzy last week, is attempting to create a $120 million cash pile for what is expected to be another rocky year for the nickel industry.
Mining investment house Resource Capital Fund will provide $20 million through 40¢ per share, with eligible shareholders offered a bargain basement subscription price of 30¢ a share for about $100 million, in a two-pronged capital raising. Mirabela last traded at 34¢ on the ASX.
RCF has an option to inject another $20 million down the track.
The Perth-based company's sole asset, the Santa Rita project in Brazil with an estimated 22-year life, has recently reached production capacity with full commercial production expected by year end, shareholders were told at the company's uncomfortably timed annual meeting in Perth yesterday.
Chief executive and managing director Ian Purdy made no apologies for last week and said he expected the next 12 to 18 months to be difficult for nickel players. ''The nickel price is very, very volatile,'' Mr Purdy told shareholders in light of a 41 per cent drop in the nickel price since February 2011. However, he was optimistic that a nickel deficit would kick in eventually bringing the price back up. Nickel was trading at about $US7.60 yesterday.
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