Centaurus Metals (ASX: CTM) has received firm commitments from over 20 high-quality Australian and international institutional investors to raise A$75 million.
The raising is part of an institutional placement to underpin the next phase of growth and development of its 100%-owned Jaguar Nickel Sulphide Project in northern Brazil.
Specifically, the funds will be used to complete a Definitive Feasibility Study (DFS) for Jaguar and maintain the company’s very strong existing drilling momentum.
A 90,000m drill program planned for 2022 will include significant ongoing diamond drilling designed to maximise the Measured and Indicated components of the extensive Resource inventory ready for Reserve conversion.
Funds will also be used for pre-development and financing activities ahead of a planned Final Investment Decision (FID) on the Project in Q3 2023.
There was very strong demand for the Placement from over 20 Australian and international institutional investors as well as existing substantial shareholders, including affiliates of the Sprott Group, McCusker Holdings, Dundee Goodman Merchant Partners and Harmanis Holdings.
Institutional bidding under the placement significantly exceeded the A$75 million Placement amount and bids were scaled to accommodate the strong demand.
The proceeds of the Placement will increase the company’s cash balance to approximately A$83 million, significantly strengthening its balance sheet as it completes DFS activities and advances the Project through to FID.
Centaurus recently delivered an updated JORC Mineral Resource Estimate (MRE) of 80.6Mt at 0.91% Ni for 730,700 tonnes of contained nickel metal for the Jaguar Project, making it one of the largest undeveloped nickel sulphide projects globally with class-leading ESG credentials given the extremely low carbon footprint the Project will have as a result of Brazil generating 80% of its grid power from renewable sources.
Centaurus’ Managing Director, Darren Gordon, said the company anticipates that, with the updated resource estimate and ongoing development drilling, the DFS will show a further enhancement of the already robust economics of the Jaguar Project. Development drilling over the next six months is designed to increase the Measured and Indicated component of the MRE to over 500,000 tonnes of contained nickel to underpin a long-life nickel sulphate project producing at least 20,000 tonnes of nickel in sulphate per annum.
“We are delighted with the very strong level of interest received from global investors for this milestone capital raising – which really puts Centaurus in an outstanding position to realise our objective of becoming one of the world’s next significant green nickel producers.
“The strong interest in this raise reflects both the scale and quality of the Jaguar Project and its impeccable ESG credentials, combined with the clear corporate strategy we have outlined to bring it into development as quickly as possible.
“It also reflects the strong macro environment for the nickel, which recently hit 11-year highs on the strong demand outlook from the burgeoning EV, renewable energy and lithium-ion battery sectors. Nickel is an extremely valuable and very strategic metal, and yet supply globally is constrained in part because of the scarcity of major new projects coming on stream, particularly nickel sulphide projects.
“We have one of the most significant new nickel sulphide projects anywhere in the world, and we are really looking forward to maximising its potential for our shareholders in the months and years ahead.”
Use of Funds
The funds raised via the placement will be used on the Jaguar Project, for:
• Definitive Feasibility Study work including all development drilling, metallurgical testwork, process engineering and early-stage infrastructure work;
• Regional exploration drilling of new priority targets;
• Deferred acquisition costs; and
• General working capital purposes
For further information please visit: https://www.centaurus.com.au/site/content/
