Coutesy of thewest.com.auIn what could be its final equity...

Coutesy of thewest.com.au

In what could be its final equity raising before the development of the Nova nickel-copper mine, Sirius Resources is expected to emerge from a trading halt as early as today to announce an $83.5 million boost to its coffers.

Through Perth broker Hartleys, Sirius was yesterday placing 34.2 million shares at $2.44 each. Its shares had earlier been placed in a trading halt at $2.61.

Sources close to the raising said the shares were taken up by existing and institutional investors, and the placement was expected to be wrapped up by this morning.

The raising will provide Sirius with some financial breathing space, increasing its cash reserves to $111 million as it approaches the development phase for its breakthrough Nova deposit, north-east of Norseman.

The equity injection is expected to help pay for a definitive feasibility study for Nova, which is due to be finished by the middle of next year, and advance work on the Bollinger deposit.

Nova's mine development is expected to cost $471 million, with Sirius likely to rely heavily on debt funding given what are regarded as the project's positive economics. Any equity contribution from Sirius could come from its existing cash reserves.

Sirius' biggest shareholder Mark Creasy will have to contribute $141 million to maintain his 30 per cent stake in the Nova project. So far he has been free- carried until a decision is make to develop the mine next year.