Sirius Resources has told the market it is conducting a capital raising.
The developer of the Nova nickel discovery went into a voluntary trading halt this morning ahead of announcing the proposed funding move.
Sirius' quarterly report released last week showed it had $32.2 million in cash, having burned through about $10.1 million during the September quarter, including $6.7 million on exploration and studies at Nova.
The company is aiming to have a definitive feasibility study on Nova complete by the middle of next year. It expects to spend about $12.1 million in the three months to the end of December.
The report said the company was in preliminary talks with a number of banks over proposals to finance the estimated $471 million capital cost of developing a mine at Nova.Sirius' shares last traded at $2.61.