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  • Poseidon Nickel To Raise Capital 0 comments
    May 4, 2014 8:44 PM

    Poseidon Nickel (ASX: POS) is heading to the market to raise capital and has placed its shares into an ASX trading halt.

    The halt will last until the earlier of the announcement being released to the market or the commencement of normal trading on Monday, 5 May 2014.

    Earlier this year Poseidon raised $3.8 million at $0.07 for pre-production activities at its Mt Windarra Nickel mine in Western Australia, where it plans parallel gold production.

    Shares in Poseidon were trading at $0.09 prior to the halt.

    Notably, the production of gold from tailings that is adjacent to Windarra offers potential for early cash flows at attractive operating costs of just A$800 per ounce.

    The Cerberus nickel deposit at Windara has a total Indicated and Inferred resource of 4.55 million tonnes at 1.51% for 68,600 tonnes of nickel, including a Probable reserve of 1.22Mt at 1.3% for 15,880 tonnes of nickel.

    The mining cost has been estimated at A$76/t in the DFS.

    The capital costs to restart mining at Mt Windara this year could be under $15 million, poised to capitalise on what many institutions believe will be a strong market for nickel in the short and medium term.

    Investors are looking for nickel exposure as nickel prices trend higher following Indonesia's ban on export shipments of unprocessed ore as it seeks to push domestic processing.

    Indonesia had accounted for 18-20% of global nickel supply, shipping 41.5 million tonnes of nickel ores in the first nine months of 2013.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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