Widgie Nickel braces for AU$24M IPO; here’s all you need to know

Highlights 

  • Nicker miner Widgie Nickel to make debut on the ASX on 22 September.
  • The Western Australia-focused company raised AU$24 million via the IPO.
  • The miner issued 120 million shares at an offer price of 20 cents.
  • The company owns an interest in the Mt Edwards project, located in WA.

The recent boom in the battery and electrification sector has propelled battery mineral explorers to launch their initial public offerings (IPOs) to cash in on higher metal prices. The rise in global demands for electric vehicles and battery power has pushed prices higher of battery metals such as graphite, rare earths, copper, cobalt, nickel and lithium.

There is a slew of battery metal companies which are lined up to list their shares on the Australian Stock Exchange (ASX) such as copper explorers Recharge Metals (ASX: REC) and Revolver Resources, nickel miners NickelSearch and Widgie Nickel as well as lithium-sulphur batteries developer Li-S Energy.

Nickel exploration and development company Widgie Nickel is ready to list on the domestic exchange after successfully raising AU$24 million in its IPO. Shares of Widgie Nickel is slated to commence trading on the ASX on 22 September under the ticker name ‘WIN’.

The company has spun out of ASX-listed Neometals (ASX: NMT) to focus on nickel production and new economy metals. It owns a 100% stake in the Mt Edwards project located near Kambalda in Western Australia, which is rich in nickel. The project covers around 240 km of tenements across the Widgiemooltha dome. It contains a significant mineral resource of 162,000 tonnes of nickel across 11 deposits on granted mining leases.

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Here’s all you need to know about Widgie Nickel IPO

Widgie Nickel has raised AU$24M via IPO

Image Source: Copyright © 2021 Kalkine Media

Formed in March this year, Widgie Nickel is an aspiring mid-tier nickel producer located in the Kambalda District, Western Australia. It lodged a prospectus with the Australian Securities and Investments Commission (ASIC) on 19 August 2021 to raise AU$24 million by issuing 120 million shares at an offer price of 20 cents. The offer opened for subscription between 30 August to 8 September 2021. The company had appointed Euroz Hartleys as the lead manager to manage the IPO.

The IPO is an entitlement offer under which shares will be issued to eligible Neometals shareholders on the pro rata basis to their shareholding in the company as of 26 August 2021.

As per the offer document, the eligible shareholders will be offered one ordinary share in Widgie Nickel for every 1.083 shares they own in Neometals.

The company intends to use IPO proceeds to explore and develop the Mt Edwards project with an objective to maximise the value for its shareholders.

Going ahead, the project is expected to be production ready by the end of 2023. The company aims to undertake work programs designed to increase resource size and confidence of existing resources and commence development studies. It plans to commence further exploration with a goal to discover more mineralisation to increase the endowment.

Must Read: Recharge Metals eyes AU$5M via IPO; how to invest in this copper explorer

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