The Poseidon Nickel Ltd (ASX: POS) share price finished higher at the end of today's market session. This comes after the mining company provided an update on its Share Purchase Plan (SPP) in late afternoon trade.
At the closing bell, Poseidon shares were up 4.35% to 12 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) finished 0.37% higher to 7,788 points.
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What did Poseidon announce?
In a statement to the ASX, Poseidon advised it has completed its SPP, receiving overwhelming support from retail investors.
Originally, the company was targeting to raise $3 million following its successful $22 million private placement. However, after collecting approximately $13.5 million in valid applications, the board of directors increased the offer to $6 million. A scale-back of applications on a pro-rata basis based on amounts applied is being undertaken.
The SPP offered the same terms as the private placement, with its shares priced at 11 cents apiece. This equates to about 54.5 million new ordinary shares under the SPP.
It's expected that the newly created shares will be issued and allotted this Wednesday.
Poseidon's managing director, Peter Harold commented:
The funds raised will support the Company on our strategy to build high-grade nickel inventory at our Black Swan project and progress the Black Swan project toward a potential recommencement of operations in 2022.
The funds raised will be used to continue exploration activities at Golden Swan and across the Southern Terrace, undertake drilling to convert additional Silver Swan mineral resources to ore reserves, further test for extensions to the known Silver Swan mineralisation and complete mining and production studies at Black Swan.
Funds will also be allocated to reviewing the exploration potential of our Lake Johnston and Windarra nickel projects.
About the Poseidon share price
Over the past 12 months, Poseidon shares have rallied almost 100% higher, reflecting positive investor sentiment. Since the start of 2021, the company's share price is up around 80% alone.
On valuation grounds, Poseidon presides a market capitalisation of roughly $346 million, with massive 3 billion shares outstanding.
