PERTH – ASX-listed Nickel Mines has completed a $175-million senior secured note offering to help fund the second stage acquisition of the Angel Nickel project, in Indonesia.
The senior unsecured notes have an interest rate of 6.5% and will mature at the start of April 2024.
“With the company’s strong current cash position and demonstrated cash generating capacity from the company’s existing asset base, the cost of capital was a key consideration for the bond issue,” said Nickel Mines executive director and CFO Peter Nightingale.
“The company’s significant funding flexibility for the Angel Nickel acquisition allows the company to size the bond issue to optimise the terms of our inaugural issuance in light of volatile prevailing market conditions.
“Concurrently, the establishment of a listed bond programme provides the company with access to a diversified and efficient form of funding which will position the company very well to pursue future opportunities that may be available to it beyond the current Angel Nickel transaction.”
Nickel Mines last year struck a definitive agreement with partner Shanghai Decent Investment to acquire a 70% interest in the Angel Nickel project for $490-million.
- [Editor:Catherine Ren]