nkl 120% oversubscribed

Did anybody subscribed for Nickel Australia.
I have send $10k. Hate to see how many will be rejected.


Nickel Australia IPO oversubscribed
Source: SYDNEY AAP
Date: 2003-Nov-30 04:54 PM

The $12 million initial public offer (IPO) of shares in Perth-based Nickel Australia has closed oversubscribed by 120 per cent, the company said.

Nickel Australia said it had received applications for more than $26 million worth of stock when it officially closed its public issue late on Friday night.

The company, scheduled to list on the Australian Stock Exchange (ASX) on December 9 under the code NKL, has a portfolio of nickel sulphide interests in Western Australia, mostly acquired from Croesus Mining Ltd.

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Led by the former General Manager of Exploration for Jubilee Mines, Tony Rovira, the company will issue a total of 48 million shares at 25 cents.

On listing, it will have 73 million shares on issue and 8.25 million options, with a market capitalisation at the issue price of $18.25 million.

"The level of response from investors has been exceptional, with demand outweighing available stock by a factor of more than 2 to 1," Mr Rovira said in a statement.

"Of particular note has been the level of demand from institutional investors which, together with applications from existing Croesus shareholders and retail investors, underpinned a highly successful capital raising."

Even though the market generally had slowed in recent weeks, the level of investor support for quality long-term nickel exploration companies was clearly still exceptionally strong, Mr Rovira said.

"This bodes well for the longer term future of the current resource investment cycle," he said.

Mr Rovira said the strong response to the IPO reflected the positive long-term forecasts for the nickel market, with demand widely predicted to remain very strong through until the end of the decade.

"With a balanced portfolio of projects in one of Australia's most productive gold and nickel regions - the Norseman-Wiluna belt - Nickel Australia is very well placed to participate in this upside," he said.

Nickel Australia has four project areas, including 100 per cent interest in the Nickel Rights over three key areas in the Kalgoorlie district of Western Australia, acquired from Croesus Mining.

It also has the right to earn an 85 per cent interest in the Splinter gold-copper project located south east of Norseman.

The Norseman Project, centred on the town of Norseman, is located approximately 20 kilometres south of Mincor Resources NL's Miitel, Wannaway and Redross mines and around 60 kilometres from the major nickel mining centre of Kambalda.

Limited previous exploration by Central Norseman and WMC Resources Ltd returned significant nickel sulphide intercepts at various prospects including Talbot Island, Jimberlana, Mt Thirsty, Polar Bear, Petersens Gossan and East Town, the company said.

By Darrin Barnett