Magnetic to raise $5m in IPO for nickel exploration

West-Perth based Magnetic Resources NL has announced plans to raise $5 million in its initial public offer for exploration of the company's nickel tenements.

The company, which will offer 25 million shares at 20 cents, acquired an interest in 64 Western Australian tenements owned by West Perth minerals explorer Image Resources NL earlier this year through a joint venture agreement.

The Magnetic board will issue 8.2 million shares to Image shareholders on a basis of one Magnetic share for every nine held, as well as issuing 12.3 million contributory shares to Image shareholders on a one for six basis. Magnetic will also issue 6.5 million contributory shares to its directors and consultants.

Image chairman Peter Thomas will serve as chair of Magnetic in a non-executive capacity. He is joined on the board by Image directors George Sakalidis and Roger Thomson acting as managing director and technical director respectively.

The company has retained Stripe Capital as Sponsoring Broker, with Somes & Cooke acting as Auditor and Independent Accountant. TPT Nominees will act as Float Co-ordinator, and Smyth & Thomas will serve as solicitors to the company.

The offer will open on February 26, to close on March 16.