Chemical
Australian Potash raises $7 mn to fund Lake Wells SOP project
The company plans to use majority of this fund towards completion of front-end engineering design (FEED) optimisation program at the Company’s 100% owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia
- By ICN Bureau
| November 03, 2020
Australian Potash Limited is pleased to advise that it has received firm commitments for $7 million through a placement of 63,063,070 fully paid ordinary shares at an issue price of 11.1 cents each. The bookbuild was oversubscribed with strong demand from institutional and professional investors.
The company plans to use majority of this fund towards completion of front-end engineering design (FEED) optimisation program at the Company’s 100% owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia.
The placement shares will be issued on the same terms as, and rank equally in all respects with, the existing fully paid ordinary shares in the company. 14,405,007 placement shares will be issued
under the company’s 15% placement capacity under ASX Listing Rule 7.1, and 48,658,063 placement shares will be issued under the company’s 10% placement capacity under ASX Listing Rule 7.1A. Settlement is expected on or around Tuesday 10 November 2020.
Matt Shackleton, Managing Director of APC said, “APC are very pleased by the high demand and institutional investors taking note before key catalysts materialise over the coming quarter.
“The strong support for the placement is a testament to our Lake Wells SOP Project’s appeal as one of this state’s pre-eminent mining-agri projects, positioned as a low cost, high return, ultra-low carbon emitting SOP project, which sits comfortably in the lowest quartile of the global cost curve
“The placement delivers a strong balance sheet for the company. Finalising the EPA approvals pathway, presenting further offtake agreements and finalising the syndicated debt facility, with NAIF, commercial lenders and recently EFA now rounding out due diligence, positions the Company and the project exceptionally well leading into 2021.”
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