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- Australian Potash (APC) has received firm commitments for a $2 million placement and has also announced a rights issue
- Approximately 40 million fully paid shares will be issued to sophisticated and professional investors at a price of five cents each
- Australian Potash is also hoping to raise $3.1 million through a rights issue
- The company will use the money to progress front-end engineering design activities at its Lake Wells Sulphate of Potash Project in WA
- Shares in Australian Potash are trading steadily today, currently worth 7.7 cents each
Australian Potash (APC) has received firm commitments for a $2 million placement and it has also announced a rights issue.
Approximately 40 million fully paid ordinary shares will be issued to sophisticated and professional investors at a price of five cents each.
This price represents a 35.1 per cent discount to the closing price of $0.077 which was recorded on April 28.
The shares are expected to settle around May 6.
Australian Potash is also hoping to raise $3.156 million, before costs, through a rights issue.
The rights issue will comprise of one rights share for every seven held. Shares will be priced the same as those in the placement.
Australian Potash will use the money from the placement and the rights issue to progress front-end engineering design (FEED) activities at its Lake Wells Sulphate of Potash Project in Western Australia.
The money will also be used to finalise commercial discussions surrounding offtake and project debt facilities, and general working capital.
“The most pleasing aspect of the very strong support for the placement of new shares is that our near-term milestone targets are well understood,” Managing Director Matt Shackleton said.
“Building on the 70,000 tonnes per annum binding offtake term sheets already announced, the offtake program to contract the remaining balance to reach the target of 125,000 – 135,000 tonnes per annum of our projected 150,000 tonnes per annum output is well advanced,” he said.
Shares in Australian Potash are trading steadily today, currently worth 7.7 cents each at 11:51 am AEST.
