Centaurus Metals, a base metals developer, has successfully raised A$46.9 million through a share placement to advance its Jaguar nickel sulphide project in Brazil. The company received commitments from several global institutional, corporate, and sophisticated investors, resulting in the placement of over 64.29 million shares priced at 73 cents each.
This offer price represents a 13.6% discount to Centaurus’ last trading price and a 14.2% discount to the company’s five-day volume weighted average share price. The shares will be placed in a single trance under Centaurus’ existing placement capacity.
Centaurus Metals expressed satisfaction with the strong interest shown by existing shareholders and global investors, highlighting the confidence in the potential of the Jaguar asset. The funds raised will bolster the company’s position as it approaches the final investment decision (FID) process scheduled for September 2024.
The additional funding enables Centaurus Metals to pursue a dual-track development strategy for the Jaguar project. Feasibility, development, and strategic partnering activities will progress alongside ongoing exploration aimed at expanding the resource base. By the time financing and development commence, the company could potentially publish a significantly larger resource base, exemplifying its substantial long-term nickel sulphide asset with considerable upside.
The firm remains confident about the fundamentals of the nickel market, particularly Class-1 nickel, given the growing demand from the electric vehicle, renewable energy, and lithium-ion battery sectors. With one of the most significant undeveloped nickel sulphide projects globally, Centaurus Metals aims to maximize its potential for shareholders in the months and years ahead.
The company intends to become one of the world’s leading green nickel producers, and the successful share placement strengthens its position to achieve this objective. As Centaurus Metals progresses with the Jaguar nickel sulphide project, it affirms its commitment to delivering value, sustainable growth, and capitalizing on the extensive opportunities within the nickel market.
In conclusion, Centaurus Metals’ A$46.9 million share placement showcases investor confidence in the Jaguar project’s prospects. The funds raised will support the company’s strategic initiatives, including the final investment decision process and ongoing exploration. With its focus on becoming a leading green nickel producer, Centaurus Metals remains optimistic about the future of the nickel market and the significant potential of its Jaguar asset.
