Platts reported that Mirabela Nickel is planning another round of capital raising to pay for cost overruns at its flagship Santa Rita nickel project in Brazil.

As per report, Mirabela will launch a share offering in Canada, details of which are yet to be disclosed. It also plans to complete a private placement in Australia of up to 21.5 million shares.

The proceeds will be used to cover about USD 28.1 million of cost overruns at Santa Rita, recover a foreign exchange loss of USD 5.3 million, costs related to the startup of Santa Rita of about USD 10.6 million and for other general working capital purposes.

This latest round of capital raising follows a total of AUD 190 million Mirabela raised this year via share offerings, and a further AUD 190 million of loans secured in May from a consortium of banks.

The Santa Rita mine has cost USD 462.1 million so far to build, and construction is expected to be completed by September. The project is the largest Greenfield nickel sulphide discovery in the world in the last decade.

(Sourced from www.platts.com)