Aston Minerals raises $11m for its Canadian nickel project development

Aston Minerals (ASX: ASO) is about to add 180.33 million new shares to its register through an $11 million placement to bolster development of its nickel resource at the Edleston project in Ontario.

Firm commitments have been received for all the shares on offer.

Edleston is located about 60km south of the mining town of Timmins.

Both the cities of Timmins and neighbouring Kirkland Lake are close to significant mineral producers, both past and current.

Edleston contains the Boomerang nickel resource.

‘Strong’ international interest

The company’s deposit lies over a 6.5km strike sone which the company says has undergone extensive serpentinisation, which is a type of hydration and metamorphic transition.

Subject to shareholder approval, executive chairman Peter Breese, managing director Russell Bradford and non-executive director (and well-known resources investor) Tolga Kumova between them have applied for a total of $1,175 million of the placement.

Mr Breese will subscribe for $100,000 worth of shares, Mr Bradford for $75,000 and Mr Kumova for $1 million in shares.

Aston reports that it has received strong demand for the new shares from international institutional investors.

Premium component under Canada’s flow-through regime

The placement has been priced at $0.06 per share with 162.33 million shares to be issued.

An additional 18 million shares will be offered at a premium to market under Canada’s flow-through share regime which provides tax incentives to Canadian investors through a system where they can claim tax breaks from a company’s spending on exploration and mining development.

These flow-through shares will be priced at $0.07 per share.

The placement includes a one-for-two free attaching option exercisable at $0.09 per share and expiring two years from issue.

Metallurgical work and more drilling planned

Mr Bradford said support for the placement had come from existing shareholders as well as new institutions, family offices and individuals.

“The Aston team have put together a pre-scoping study phase of work which will focus on improving the measured and indicated category of our resources,” he added.

The placement moneys will be used to carry out metallurgical test work, undertake infill drilling at the Bardwell zone, do resource drilling at the B2 zone, and for general working capital.