Centaurus Metals has announced that it has received firm commitments to raise $75 million to progress towards a definitive feasibility study (DFS) at its Brazilian nickel sulphide project Jaguar.
The money will be raised at $1.16 per share from more than 20 high-quality Australian and international institutional investors.
The DFS should be completed by the end of 2022. The rest of the funds will be used for pre-development and financing activities ahead of a Final Investment Decision, regional exploration drilling of new priority targets, deferred acquisition costs, and general working capital purposes.
“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,” said Centaurus’ Managing Director, Darren Gordon in an ASX announcement.
“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.”
Located in the western portion of the world-class Carajás Mineral Province of Brazil, the Jaguar Nickel Sulphide Project was acquired by Centaurus from global mining giant, Vale S.A., in April 2020. It includes multiple nickel sulphide deposits and exploration targets within a 30km2 land package.
Since the acquisition, Centaurus has defined a globally significant Mineral Resource Estimate (MRE) totalling 80.6Mt grading 0.91% Ni for 730,700t of contained nickel.