The Poseidon Nickel Ltd (ASX: POS) share price won't be going anywhere today.
Shares in the exploration company entered a trading halt before yesterday's session.
In addition, Poseidon also released its quarterly update earlier today.
Let's take a look at why the Poseidon share price is in a halt and how the company performed last quarter.
Poseidon share price halted on capital raise
Shares in Poseidon entered a trading halt before the commencement of yesterday's session.
At the request of the company, securities in Poseidon were placed in a halt for up to 2 business days.
Poseidon requested the trading halt pending an announcement by the company regarding a capital raising.
Poseidon did not provide further information on how much the company was looking to raise or where funds will be directed.
However, an article in the AFR's Street Talk column has provided some light on the capital raise. According to the article, Poseidon is looking to raise $20 million in a placement at 11 cents a share.
Poseidon releases quarterly report
Following its request for a trading halt yesterday, Poseidon also released its quarterly report earlier today.
For the June quarter of 2021, the company reported positive progress in its various projects. Poseidon highlighted operations from its Golden Swan Drilling project, Back Swan scoping study and Windarra Tailings project.
The company also provide a snapshot of its corporate finance performance for the quarter.
As at 30 June 2021, Poseidon noted a cash and current investment holding of $7.9 million.
The company's net cash outflow from operating and investing activities totalled $7.5 million for the quarter. In addition, Poseidon cited $6.6 million in cash expenditures for exploration and evaluation.
Approximately $3.4 million was spent on the Golden Swan drill drive, $1.9 million on exploration activities and $0.1 million on the Windarra tailings project.
Poseidon noted that there were no production or development activities for the June quarter.
Snapshot of the Poseidon share price
Poseidon is a nickel sulphide exploration and development company with three flagship projects in the Goldfields region of Western Australia.
The Poseidon share price has performed strongly in 2021, surging more than 99% since the start of the year.
Shares in the exploration company have gained significant momentum in the past month in particular.
The Poseidon share price last traded at 13.5 cents, giving the company a market capitalisation of approximately $379.1 million.
