Tomahawk, WI 08/04/2014 (Basicsmedia) – Nickel explorer, Sirius Resources N.L. (ASX:SIR), is closing in on a $470 million funding for its Nova project in Australia having already raised a total of $189 million through share placement to institutional investors. The placement of the shares according to the company’s managing director and the CEO, Mark Bennet, in an interview on CNBC was entirely oversubscribed.
Sirius Resources N.L. (ASX:SIR) has already drilled the first hole of discovery and is currently carrying out a feasibility study, which Mr. Bennet maintains is a ‘Slum Dunk’ in terms of its economics being favorable. Sirius Resources is now in the process of filling for permits that should kick start the process of mining. The value of the project looks to have gotten the attention of investors as well as banks, which should have a positive impact going forward in terms of popularity and viability.
“It is probably the biggest Nickel discovery in 20 or 25 years anywhere in the world, so it is a sort of globally significance deposit and that I guess is why the market recognizes it,” said Mr. Bennett.
Having raised $189 million, Sirius Resources N.L. (ASX:SIR) is now looking on ways to raise the remaining amount through debt financing. The ceo remains confident on acquiring the remaining financing as the project continues to gain momentum with both Australian and foreign investors. Investors from London and Hong Kong are also thought to be highly interested in the project, according to the CEO.
“.. Australia investors have been at the forefront because it has been a very quickly moving story, and they have been closest to it. We have got a lot of support out of London and Hong Kong and some from North America as well. So it’s pretty global interest, and the capital raising was way oversubscribed,” said Mr. Bennett.
The discovered Nickel according to the CEO is low-cost something that should work to the Sirius Resources N.L. (ASX:SIR)’s advantage, taking into consideration that prices for the metal have been depressed in the market in the recent times. Being low cost in terms of production according to Mr. Bennett will guarantee a form of downside insurance going forward.