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Western Areas secures $100m capital raising
Ashurst has advised Western Areas on its $100 million capital raising for nickel mine development.
Naomi Neilson
Firm: Ashurst (Western Areas)
Value: $100 million.
Area: Corporate and finance.
Key players: The team was led by partner Roger Davies, who was assisted by lawyers Jacob Carmody and Ben Thomas.
Deal significance: Proceeds from the equity raising will be used to provide funding for nickel mine development capital expenditure at Western Areas’ Odysseus project, to allow progression of studies and respect to the inclusion of AM6 to the Odysseus mine plan and New Morning in the mine plan and advance Western Areas targeted drilling campaign on its portfolio of exploration assets.
The placement price of $2.15 represents an 8.1 per cent discount to Western Areas’ last closing price of $2.34 in March and a 15.2 per cent discount on the 10-day VWAP of $2.54 in March. The placement is being conducted pursuant to Western Areas’ existing capacity under Listing Rule 7.1.
Western Areas intends to cap the SPP at $15 million but retains the right to accept oversubscriptions of scale back applications (in whole or part) in its absolute discretion. Settlement of shares issued under the SPP is expected to occur in April.
Mr Davies commented: “Western Areas is a longstanding and highly valued client of our firm and we are delighted to have been able to support them again.”
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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