The Nickel Mines Ltd (ASX: NIC) share price is belting the S&P/ASX 200 Index (ASX: XJO) today.
At the time of writing, the nickel producer's shares are up 3.31% to an intraday high of $1.09 apiece.
In comparison, the benchmark ASX 200 index is up 0.65% to 7,007.1 points.
Why are Nickel Mines shares powering ahead?
Investors are bidding up the Nickel Mines share price following the company's update of its senior secured notes offering.
According to its release, the company advised it has completed the issuance of its US$225 million senior secured notes. The notes are priced at an interest rate of 10% per annum, payable on a quarterly basis in arrears.
The final maturity date will be on 23 August 2025.
In addition to the company's cash reverses, the proceeds from the Notes will be used to finalise the acquisition and ramp-up of the Oracle Nickel Project.
Nickel Mines managing director, Justin Werner commented:
Completion of this issuance has positioned the company to increase its ownership interest in Oracle Nickel to 70% and meet the remaining payment obligations for the acquisition.
The early commissioning of the Oracle Nickel RKEF lines, expected in October, will allow us to significantly bring forward nickel production. Our trusted partner Shanghai Decent continues to deliver operationally with near-term commissioning.
The company will soon have 12 RKEF lines in operation and approximately 100kt of attributable nickel production, placing us comfortably amongst the top-10 global producers.
Also providing a boost is the S&P/ASX 300 Metals and Mining Industry (ASX: XMM). The index is among the best performers today, up 1.21% to 5,548.5 points.
Nickel Mines share price summary
Extreme volatility in 2022 has led the Nickel Mines share price to register a loss of 25%.
However, in the past 12 months, the share is up 5% following strong gains achieved towards the backend of 2021.
Based on today's price, Nickel Mines presides a market capitalisation of roughly $3.14 billion.
