In what could be its final equity raising before the development of the Nova nickel-copper mine, Sirius Resources has carried out an $83.5 million boost to its coffers.
Through Perth broker Hartleys, Sirius has placed 34.2 million shares at $2.44 each.
Sirius' shares were down 6 cents, or 2.3 per cent, to $2.55 at 10.16am after merging from a trading halt this morning.
Sirius said the shares were taken up by institutional investors and sophisticated.
The raising will provide Sirius with some financial breathing space, increasing its cash reserves to $111 million as it approaches the development phase for its breakthrough Nova deposit, north-east of Norseman.
The equity injection is expected to help pay for a definitive feasibility study for Nova, which is due to be finished by the middle of next year, and advance work on the Bollinger deposit.
"Following completion of the placement Sirius will have an exceptionally strong balance sheet, enabling the company to aggressively explore the new targets around the Nova-Bollinger nickel- copper project, to complete the feasibility study and to move into the project development stage," managing director Mark Bennett said.
Nova's mine development is expected to cost $471 million, with Sirius likely to rely heavily on debt funding given what are regarded as the project's positive economics. Any equity contribution from Sirius could come from its existing cash reserves.
Sirius' biggest shareholder Mark Creasy will have to contribute $141 million to maintain his 30 per cent stake in the Nova project. So far he has been free-carried until a decision is made to develop the mine next year.