NickelX sets sights on new strategic horizons with $2m capital raise
NickelX (ASX: NKL) is entering a period of significant change with some extra padding in its war chest, thanks to a successful capital raise.
Now under new management and with a proposed name change on the table, NickelX received strong support from institutional, sophisticated and professional investors to raise approximately $2 million via a placement of 100 million new fully paid ordinary shares at an issue price of $0.02 per share.
The funds will largely be allocated to work at the company’s Elliot Lake uranium project in Ontario, Canada, while new management is undertaking a review of NickelX’s exploration portfolio and assessing other strategic value-add opportunities.
New strategic direction
Managing director Peter Woods – who was appointed to that role in late May – said it was pleasing to have received strong demand and secured funds to support a new strategic direction for the company.
“I’d like to thank current NickelX shareholders for their continued support and we welcome our new shareholders as we reposition the company’s strategy to growth and focus on delivering shareholder value.”
That pivoting of the company includes a proposed name change to Strata Minerals.
The new title was selected to align with a change of direction for the company as it aims to extract value from its current uranium, rare earth and gold prospects while assessing other value-adding opportunities.
Transition away from nickel
In announcing Mr Woods’ appointment, the company said it represented a transition away from nickel exploration and into the unrealised potential of the Elliot Lake uranium project.
NickelX added more ground to its Elliot Lake play and commenced a new exploration program there within days of Mr Woods’ appointment being announced.
The company acquired the additional highly prospective uranium tenure, referred to as the Blind River Block, in late May.
Reconnaissance program
At the same time, the company commenced a field reconnaissance program including mapping, sampling and drill hole siting at Elliot Lake, where the company is targeting conglomerate-hosted uranium mineralisation.
Magnetic and radiometric data reprocessing combined with the company’s recent geological review has defined multiple high-priority uranium targets.
The prolific Elliot Lake uranium district produced 362 million pounds of uranium at 0.106% from 13 underground mines active between 1955 and 1996, within an area of approximately 225 square kilometres.