Nordic Nickel Secures Funding to Boost Exploration in Finland
NORDIC NICKEL LIMITED (NNL) Share Update September 2024 Tuesday 24th
Nordic Nickel Raises A$1.05 Million to Advance Finnish Projects
Nordic Nickel Limited (ASX: NNL) has successfully raised A$1.05 million to support its ongoing exploration and development activities in Finland, aiming to become a major European supplier of sustainably sourced nickel sulphides.
Instant Summary:
- Raised A$1.05 million through a share placement at A$0.06 per share.
- No discount to the 15-day VWAP, indicating strong shareholder support.
- Focus on advancing the Pulju nickel-copper-cobalt project in Finland.
- Strategic partnership discussions are ongoing.
Capital Raising Details
On 25 September 2024, Nordic Nickel Limited announced the successful completion of a A$1.05 million capital raising. The funds were raised through the placement of 17.5 million new shares at A$0.06 per share, which was the last closing price and represented no discount to the 15-day Volume Weighted Average Price (VWAP). This strong show of support from existing shareholders underscores confidence in the company's strategy and its critical minerals projects in Europe.
Project Focus
The primary focus of the raised funds will be on the Pulju project in northern Finland. This district-scale nickel-copper-cobalt exploration and development opportunity is situated in a progressive mining district and hosts both shallow, disseminated nickel sulphides and high-grade massive/remobilised sulphides. The Pulju project already boasts a JORC (2012) Mineral Resource Estimate of 418Mt at the Hotinvaara Prospect, containing significant amounts of nickel, copper, and cobalt.
Exploration and Development Plans
To date, Nordic Nickel has drilled 28 diamond holes for 15,432 meters at Pulju, with multiple wide intersections reported. This drilled area represents just 2km of the known 35km of mineralised strike within the Pulju project area, highlighting strong potential for resource growth. Future drilling will focus on increasing the size of the known resource and targeting structures that may have trapped and concentrated the extensive remobilised sulphides found at Pulju. Notably, some zones have attained grades of up to 9.6% nickel, indicating the potential for extremely high-grade mineralisation.
Upcoming Catalysts
Several key catalysts are expected in the coming months:
- Metallurgical Test Results: These will assess the economic potential of the project, not only at Hotinvaara but throughout the Pulju Belt.
- Resource Model Refinement: Based on laboratory-scale nickel and cobalt results.
- Base of Till (BOT) Drilling Database Results: Over 10,000 historical BOT assay samples will help further assess the prospectivity across the Pulju Belt.
- Regional Structural Analysis: This will highlight structural features that may host depositional trap sites for remobilised sulphides, aiding in drill targeting.
- Strategic Discussions: Ongoing discussions with potential strategic partners are expected to be finalised in 2025.
The successful capital raising and the ongoing exploration activities are likely to have a positive impact on Nordic Nickel's stock. The strong support from existing shareholders and the strategic focus on high-grade nickel sulphide mineralisation could attract further investor interest. Additionally, the advancement of strategic partnership discussions could provide significant upside potential for the company's stock.
Investor Reaction:
Analysts are likely to view the capital raising positively, as it demonstrates strong shareholder confidence and provides the necessary funds to advance the Pulju project. The upcoming catalysts, particularly the metallurgical test results and resource model refinement, are expected to be closely watched by investors. The ongoing strategic partnership discussions could also generate significant interest and potentially boost the stock price.
Conclusion:
Investors should keep a close eye on Nordic Nickel's upcoming announcements, particularly the metallurgical test results and strategic partnership developments. The company's focus on high-grade nickel sulphide mineralisation and its strong shareholder support position it well for future growth. Consider subscribing to our newsletter for regular updates on Nordic Nickel and other stock market news.