The company on Friday announced that the institutional entitlement offer raised some A$275-million, at 94c a share, and was well supported by institutional shareholders with a take-up of some 73%.

There was also demand from both existing and new institutional investors for the balance of the institutional component, comprising renounced entitlements and entitlements attributable to ineligible shareholders.

“We are delighted with the success of the offer which is a clear endorsement of the company’s achievements to date and the agreement to acquire a 70% interest in the Angel nickel project,” said Nickel Mines MD Justin Werner.

“This transaction is transformative for the company and is expected to approximately double the company’s nickel production capacity. It will provide us with operational footprints within what are estimated to become the world’s two largest nickel production centers and further cements and extends our excellent relationship with Shanghai Decent.”

Nickel Mines last week announced that it had reached an agreement with partner Shanghai Decent Investment to acquire a 70% interest in the Angel Nickel project for $490-million.

Angel will consist of four rotary kiln electric furnace (RKEF) lines, will have an annual nameplate capacity of 36 000 t of nickel metal and will include a 380 MW coal-fired power plant.

Meanwhile, the retail component of the entitlement offer will open on December 9, and is expected to raise a further A$89-million.