The Poseidon Nickel Ltd (ASX: POS) share price is in the red this morning, sliding 9.63% to 12 cents at the time of writing.
The dip from the market open comes after Poseidon announced an update on its Black Swan operation.
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Private placement to drive progress
Poseidon announced it had secured commitments to "place 200 million new shares at 11 cents per share" through a private placement in order to raise $22 million.
The nickel miner said funds would be used for "exploration and drilling" at its Golden Swan interest. It would also conduct"resource drilling" at its Silver Swan site to convert existing mineral to ore reserves.
Moreover, it intends to complete mining studies to "consider the potential recommencement of operations" at its Black Swan site.
As a result of the placement, Poseidon will have approximately $27 million in cash to achieve this.
Speaking on the announcement, Poseidon CEO Peter Harold said:
This over-subscribed placement supports the company on our continued strategy to build high-grade nickel inventory at our Black Swan project and progress the project toward a potential recommencement of operations in 2022.
Investors don't seem satisfied with the news, pushing the company's shares 10% into the red as trading recommences this week.
Poseidon Nickel share price
The Poseidon Nickel share price has posted a year to date return of 88%, extending the previous 12 month's return of 322%.
These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 23% over the past year.
Poseidon Nickel has a market capitalisation of $379 million at the time of writing.
