How to access nickel cobalt producer NiCo Resources IPO through Marketech Focus
NICO Resources (Nico) is a specialist nickel cobalt producer, which was formerly part of ASX-listed Metals X (ticker: MLX).
Current Projects
Nico was created when the enormous the Wingellina nickel cobalt asset was spun out of Metals X. Wingella is currently the largest undeveloped nickel deposit in Australia:
(Data source: company information released on ASX.)
Looking further afield, we can see that Wingellina is a globally significant cobalt deposit:
Although Marketech are not offering a research opinion on the stock, much is already known about the Wingellina asset, with Metals X having completed a pre-feasibility study some years prior – before the nickel price went into a major decline at the end of the last mining boom.
We’ve recently seen the price of nickel bounce back due to demand for battery metals, and this new IPO is due to close soon with allocations expected to be tight, especially given that Metals X have committed to reinvesting $4m back into the IPO.
Pre-feasibility Study Findings:
- Ore Reserve of 168Mt at 0.93% nickel and 0.07% cobalt
- Mineral Resource containing 2.0Mt nickel and 154kt cobalt
- Feasibility study (±25%) defined
- 40 year mine life at production rate of 40,000tpa Ni and 3,000tpa Co
- Production cost US$3.34/lb Ni (after Co credits assuming US$45,000/t Co)
- Capital cost $2.5 billion. Review of alternative technologies to lower capital hurdle in progress
- Key approvals in place
- Mining Agreement signed with the Native Title holders
- Water testing and modelling completed
- Environmental approval received late 2016
- Development-ready
- Focus on low capital start up options
The Raise
In the upcoming IPO, Nico proposes raising a minimum of $10 million and up to $12 million at $0.20 per share by way of an IPO and listing on the ASX through the issue of approximately 50 million – 60 million new fully paid ordinary shares.
Nico has agreed to acquire a 100% legal and beneficial interest in the nickel assets of Metals X consisting of the Wingellina (WA) and Claude Hills (SA) nickel projects, via the acquisition of 100% of the shares in Metals Exploration from Metals X under the Share Sale Agreement.
Capital Structure (ASX: NC1)
| Shares on issue | 6,000,002 |
| Acquisition shares | 25,000,000 |
| Public Offering | Min 50,000,000 Max 60,000,000 |
| Total Securities at Listing | Min 81,000,002 ($10m Raise) Max 91,000,002 ($12m Raise) |
| Market Cap at offer Price | Min $16,200,000 Max $18,200,000 |
Prospectus
Please read the Replacement Prospectus dated 23 November for further information on the Offer, available at www.nicoresources.com.au/prospectus.
Please note, whilst the Public Offer doesn’t close until Friday 17 December, bids for priority allocation are due by Wednesday 8 December and the Company reserves the right to close the book early.
Access the IPO through Marketech Focus
Having recently delivered a major platform upgrade, access to the NSX, a partnership with Marcus Today and access to Chi-X ETFs, Marketech is now offering priority access to the Nico Resources IPO.
Subscribers to Marketech Focus, (subscription $45 per month), enjoy $5/0.02% brokerage rates on their own HIN with their own Macquarie CMA, where they keep their own interest.
Although anyone can apply for stock in an IPO, up to 300 Marketech subscribers will have access to a priority allocation of $2,000 in Nico Resources and there may still be time to become a client if you wish to participate by signing up below.
The Marketech Focus Trading Platform
Marketech’s platform is built by traders, for traders. Our high-function trading platform delivers live pricing, live charts and live market depth to ensure you have the tools and trading capability at your fingertips, whether you’re on your mobile or PC.
You trade your own stock on your individual HIN. You hold your cash in your own Macquarie account where you keep the competitive interest you earn.
Our subscribers get access to brokerage starting at $5, and then 0.02 per cent for trades over $25k.
Our special offer for Ausbiz subscribers
Exclusive to AusBiz subscribers, we're offering a 30 day free-trial of our platform, including live-streamed pricing, premium charting tools and ultra-low brokerage, plus the opportunity to get priority access to the upcoming Nico Resources IPO.
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All information and material contained herein is general in nature and does not consider your financial situation, investment needs or objectives.
The information does not constitute personal financial advice, nor a recommendation or opinion that a security or service is appropriate for you.
You should seek independent and professional tax and financial advice before making any decision based on this information.