Nordic Nickel

Nordic Raises A$2.05 Million to Advance Critical Minerals Projects in Finland

Resource update and Phase 2 drilling scheduled for early 2024

Nickel sulphide explorer Nordic Nickel Limited (ASX: NNL; Nordic, or the Company) is pleased announce the successful completion of a A$2.05 million (before costs) capital raising to support the Company’s ongoing exploration and project development activities in Finland.


HIGHLIGHTS

  • Firm commitments received to raise over A$2.05 million through a placement at A$0.14 per share, representing a 12.5% discount to the 15-day VWAP.
  • The placement was well supported by existing shareholders, Directors and new sophisticated investors, demonstrating the continued and long-term belief in the Company’s critical minerals projects and development strategy in Europe.
  • In addition to the shares, participants will be granted 1 free unlisted option for every 2 shares purchased. These options have a strike price of A$0.25 and a two- year expiry.

The funds raised through the placement will allow the Company to advance towards its goal of becoming a major long-term European supplier of sustainably sourced, traceable, class-1 nickel sulphides through its two district-scale nickel-copper-cobalt exploration assets in Northern Finland. The Company’s flagship Pulju Project is known to host both shallow, disseminated nickel sulphides and high-grade massive sulphides and already has a maiden 133.6Mt JORC (2012) Mineral Resource Estimate containing 278,520t Ni and 12,560t Co1, based on shallow historical drilling.

The Company commenced its maiden drilling campaign in January 2023 at the Hotinvaara prospect within the Pulju Project and has reported multiple wide nickel intersections which highlight strong potential for resource growth. With the completion of this capital raise, the Company is now planning its Phase 2 drilling program, which is scheduled re-commence in early 2024 with a specific focus on both following up vectors to high-grade massive sulphide potential and increasing the size of the known resource.

Use of Funds – Pulju Project Acceleration

The majority of the funds raised through the placement will be allocated to exploration activity and diamond drilling at the Hotinvaara prospect at the Company’s Pulju Project in Finland, targeting both high-grade massive sulphide zones and expanding the existing Mineral Resource Estimate (MRE).

In addition to the exploration activity, the Company will use the funds to complete the metallurgical test-work studies for the Hotinvaara prospect, which will provide valuable insights into the ore characteristics and the potential concentrate grade achievable.

The Hotinvaara Prospect represents less than 2% of Nordic Nickel’s landholding at Pulju and the Company has identified at least another nine prospective zones as big or bigger than Hotinvaara throughout the Pulju Belt. A second Exploration Licence, three times the size of the Hotinvaara Prospect and called Holtinvaara, has recently been granted and represents a very exciting and highly prospective area of the Pulju Belt that has never been drill tested.

With the funds raised through this placement, the Company can now complete its review of the geological data available across the entire 240km2 land package at Pulju and complete its regional target prioritisation to identify and prioritize exploration opportunities beyond currently drilled areas.

Management Comment

Nordic Nickel Managing Director, Todd Ross, said:

“We are very pleased with the outcome of this successful capital raise in what remains a challenging market. We are grateful for the support received from both existing and new shareholders, and we are excited to continue with our plans and commitments to unlock the full potential of our exciting exploration projects in Finland.

“We look forward to executing our exploration plans and the upcoming catalysts for the Company, including assay results, resource updates and metallurgical test work – all of which will play a crucial role in showcasing the value and growth potential of our assets in Finland.”

Upcoming Catalysts and Work Program

The Company has an exciting work program planned at the Pulju Project over the next 12 months which is expected to deliver a number of strong value creation catalysts for shareholders.

Proposed upcoming work programs and key catalysts include:

  • Remaining Assay Results from 2023 Drill Program: Release of the final assay results from the last five holes of the 2023 drill program before the end of the year.
  • Resource Model Update (Early 2024): Results from all 28 holes drilled this year are being added to the existing resource model, with an updated Mineral Resource Estimate (MRE) expected to be announced early 2024. This updated resource is anticipated to be significantly larger than the previous one.
  • Q1 2024 Drilling Program: Planned drilling of 8-12 diamond drill holes strategically targeting highly prospective zones and designed to test the high-grade potential at Hotinvaara and build on the existing MRE.
  • Mid-2024 Resource Update: Q1 2024 drilling results will be added to the Resource for a second update in mid-2024.
  • Metallurgical Test Work (Mid-2024): Completion of metallurgical test work in mid-2024 to confirm the potential for commercially producing a high-quality nickel concentrate.
  • Strategic Discussions (2024): Ongoing strategic investor and joint venture discussions with various interested parties are expected to be finalized in 2024.


Click here for the full ASX Release

This article includes content from Nordic Nickel, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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