Nickel Mines raises $231m to bolster nickel project

By Tony Zhang|21 May 2020

DLA Piper has advised Nickel Mines on its $231 million equity raise.

Firms: DLA Piper (Nickel Mines)

Deal: Global law firm DLA Piper is advising nickel pig iron (NPI) producer Nickel Mines Limited (ASX: NIC) on its proposed $231 million, fully underwritten one for 3.6 accelerated non-renounceable entitlement offer.

The $783 million Nickel Mines is a producer of nickel pig iron, a core ingredient in the production of stainless steel.

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Value: $231 million.

Area: Capital raising, private equity.

Key players: Corporate partners David Ryan (head of equity capital markets, Australia), Adrian Tan and special counsel Kelly Morrison led the transaction.

They were supported by senior associate Cameron Bill, solicitor Claudia McEwen and graduate Matt Rozario.

Deal significance: Proceeds from the offer will be used by the company to exercise options to increase its current ownership in both the Hengjaya Nickel and Ranger Nickel projects from 60 per cent to 80 per cent. 

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The company’s partner for these projects is Shanghai Decent, a company within the Tsingshan group – the world’s largest stainless steel and NPI producer.

The company holds 60 per cent interests in two nickel pig iron-producing facilities at Indonesia Morowali Industrial Park, located on the island of Sulawesi. Both facilities have the kiln and furnace capabilities to make nickel pig iron.

Completion of the transactions is subject to shareholder approval, scheduled for 29 May 2020 at the company’s annual general meeting.

“We are delighted to support our client in this strategic transaction which, upon completion, will grow their exposure to highly attractive core assets and provide a platform for further growth for the company,” Mr Ryan and Mr Tan said.

The entitlement offer is fully underwritten by joint lead managers Credit Suisse and Bell Potter.

Nickel Mines raises $231m to bolster nickel project
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