Jumping on a small kick in its share price, nickel miner Panoramic Resources is attempting to raise $25 million to fund a multi-million-dollar drilling campaign.
The Perth-based miner went into a trading halt yesterday and is hoping to wrap up the raising, priced at 27ï¿½ a share, by Tuesday.
It is understood Panoramic, which operates nickel mines in the Kimberley and near Kam- balda, will use $18 million on drilling campaigns at its nickel targets to increase mine life by more than five years. A further $4 million will be used for mine optimisation and efficiency measures and $2 million for non-core project expenditure.
The raising comes hot on the heels of a small share price spike after some well-received drilling results and its quarterly report.
Its share price jumped from 27Â¢ last week to 34.5Â¢ on Tuesday. The company last traded at 32.5Â¢ before being placed in a halt yesterday while Panoramic finalised the raising.
Its proposed equity boost comes at a challenging time for Panoramic, which has seen its profit margins eroded by the weak nickel price.
Panoramic had $20 million in cash at the end of September, plus receivables of $25 million.
In a recent business review, the company outlined an estimated $27 million in expenditure over 2014, which included $6 million in near mine and regional exploration and $9 million in capital mine development.
Petra Capital has been appointed joint lead manager of the raising, along with Azure Capital.
Panoramic managing director Peter Harold did not comment.