The Nickel Mines Ltd (ASX: NIC) share price has been put into the freezer on Wednesday.
Its shares have been frozen as the company prepares to release news of a capital raise with media reporting it could be worth around $200 million.
The Nickel Mines share price will be stuck at its previous close of $1.45 until Friday unless the company drops its anticipated release before then or extends its trading halt.
Let’s take a closer look at what’s going on – or not going on – with the nickel miner’s stock today.
Why is Nickel Mines’ stock in the freezer on Wednesday?
The Nickel Mines share price has been halted amid rumours it’s looking to boost its cash holdings after last year’s acquisitions.
The company stated that the freeze will end when the company announces a capital raise is finalised.
According to reporting by The Australian, the capital raise could be being conducted through the Bank of America.
In October, Nickel Mines announced it had successfully increased its holding in the Angel Nickel Project by 30%.
The stake came at a cost of US$210 million and boosted the company’s ownership of the project to 80%.
It announced it had agreed to buy a 70% stake in the Oracle Nickel Project 2 months later.
The project comprises 4 rotary kiln electric furnace lines and has commenced construction within the Indonesia Morowali Industrial Park.
The deal will ultimately cost the company US$525 million.
Nickel Mines share price snapshot
After a strong 2021, the Nickel Mines share price has slumped into the new year. Though, it’s still outperforming the S&P/ASX 200 Index (ASX: XJO).
Year to date, Nickel Mines shares’ value have fallen 0.3%. Meanwhile, the ASX 200 has tumbled 5%.
Additionally, prior to today’s freeze, the nickel miner’s stock was trading for 21% more than it was this time last year.
The post Here’s why the Nickel Mines (ASX:NIC) share price is on ice today appeared first on The Motley Fool Australia.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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