By Stuart Condie
SYDNEY–Nickel Mines Ltd. withdrew its stock purchase plan after the value of its shares fell 26% in the past three days.
The ASX-listed company said on Friday it had received applications totaling A$57 million ($41.7 million) for the capital raise, which it announced in February. Nickel Mines had hoped to raise 18 million Australian dollars.
The stock fell amid uncertainty over the impact of joint venture partner Tsingshan Holding Co.’s exposure to margin calls on nickel derivatives losses. Tsingshan said he would not sell any Nickel Mines shares and would continue to buy production at market prices.
“Given the market volatility and the decline in the company’s share price in recent days, the Board of Directors has agreed that it is in the interests of shareholders to cancel the SPP with immediate effect. and to return all requests in their entirety,” Chief Executive Justin Werner said. .
Nickel Mines said it does not need the proceeds of the stock purchase plan for the previously announced acquisition of the 70% interest in the Oracle Nickel project.
Nickel Mines shares last traded at A$1.22. They were valued at A$1.65 at Monday’s close.
Write to Stuart Condie at firstname.lastname@example.org