The West

Sirius Resources managing director Mark Bennett with chief operating officer Rob Dennis. Picture: Gerald Moscarda/The West Australian.
Sirius Resources managing director Mark Bennett with chief operating officer Rob Dennis. Picture: Gerald Moscarda/The West Australian.

Sirius Resources has announced a $189 million capital raising to help fund the development of its Nova nickel project near Balladonia.

The raising will be by way of a placement to institutional and sophisticated investors priced at a discounted $3.82 a share.

No shareholder approval is required for the placement.

Sirius announced last week that the development of Nova would cost about $473 million.

The mine would have an initial life of 10 years and would deliver $4.5 billion in revenue over the course of its life and net cashflow of $2.7 billion based on a nickel price of $US10 a pound.

The company said it was experiencing strong interest from debt financiers and offtake customers for its product.

It has labelled Nova as the best undeveloped nickel sulphide project in the world.

Sirius shares last changed hands for $4.08.

The company's shares are expected to return to the boards on Friday.

The West Australian

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