Sirius Resources NL (ASX:SIR) (“Sirius” or “the Company”) advises that it has resolved to raise A$44 million in a placement to domestic and international institutional and sophisticated investors. Sirius’ corporate advisor Hartleys Limited is Broker to the offer.
The placement of 22 million shares was made at a price of A$2.00 per share which represents a 7.8% discount to the last closing price of A$2.17 per share.
Five diamond drill rigs are currently on site, drilling at Nova and adjacent targets.
Sirius’ Managing Director Mark Bennett said “Sirius now has a very strong balance sheet and our team can now aggressively explore around the Nova nickel-copper deposit to add additional value without the overhang of financing risk. We are now fully funded for the entire resource definition and feasibility process through to a potential future project financing decision”.
“It is greatly satisfying to have positioned the Company in this way in just four months from discovery and, importantly, with only two relatively modest placements totalling 32 million new shares. We are pleased with the overwhelming demand and support for the placement from a range of high quality institutional investors around the world” he said.
The best performing exploration stock of 2012 … can you guess it?
December 16, 2012 at 4:14 am
What has been the best performing stock of 2012 in the exploration space? Not Gold Standard Ventures. Not Reservoir Minerals. Not even Goldquest when measured from trough to peak.
The correct answer as far as we’re aware is Sirius Resources, propelled along by a nickel discovery in Australia. From pre-discovery to the current price of A$2.46 you’re looking at a 40 bagger or 4,000% return in about 4 months:
It all started on July 26, 2012 with a blind discovery hole that set the price on fire. On day 1 the shares closed nearly 8x higher at 45 cents on 56 million shares, literally hundreds if not thousands of times what had been normal trading volume. Of course that was just the beginning and since then Sirius has traded as high as $3.28, a level within easy reach of a $1 billion fully diluted valuation. Even now at A$2.50 we’re looking at a fully diluted valuation of over A$500 million. Simply incredible, and more so given the carnage visible elsewhere in the exploration space.
At some point we’ll want to take a closer look at the Nova discovery to judge its merits but right now we’re much more interested in finding the next [super]Nova. To that end, at least in the nickel space, we’ve set up a call with an interesting nickel explorer to try to make heads or tails of their chances for a market moving discovery next year — cue shameless plug — it goes without saying that if we like what we hear and decide to buy into the story then Metal Augmentor subscribers will be the first to know.
5 months ago
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