- Agrimin (AMN) boosts balance sheet with an additional $5 million from an over subscribed share purchase plan
- The company originally targeted $2 million but following applications “materially” exceeding this amount, the company accepted $5 million
- Eligible shareholders will also be offered bonus shares on the pro-rata basis of “one for every five” fully paid ordinary shares held at March 17
- Adding to an earlier placement and a $2 million government grant, the company plans to use the funds to advance its Mackay project to a final investment decision this year
- Company shares ended trade 1.3 per cent higher at 37.5 cents
Agrimin (AMN) has accepted over-subscriptions for its recent share purchase plan (SPP), raising $5 million.
Following a $5 million placement completed on February 14, eligible shareholders were able to apply for shares at the same issue price as the placement at 35 cents each.
Agrimin said applications exceeded its $2 million target, with subscriptions “materially” exceeding $5 million.
The company has elected to accept applications for approximately $5 million in accordance with the terms of the SPP.
Also in line with the terms of the SPP, AMN will complete discretionary scaling of the excess applications.
Bonus shares are also being offered to eligible shareholders to recognise the progress that the company has made on its Mackay Potash project in Western Australia, following a ten-year off-take deal with Sinochem Fertiliser Macao, a subsidiary of major Chinese potash importer Sinofert Holdings.
The bonus shares will be issued on a pro-rata basis of “one for every five” fully paid
ordinary shares held at the record date of March 17.
In addition to the placement and a grant of $2 million under the Australian Federal Government’s Supply Chain Resilience Initiative, AMN has boosted its balance sheet with the aim of advancing its Mackay project to a final investment decision this year.
According to CEO Mark Savich, the potash market is currently experiencing unprecedented circumstances with severe supply shortages and the highest prices since 2013.
“Following this capital raising, Agrimin is in an enviable position to advance its Tier 1 Mackay Potash Project to become what will be the world’s largest and lowest cost seaborne supply of Sulphate of Potash,” Mr Savich said.
The funds raised are set towards ongoing project financing activities, Front End\Engineering Design work, project tenure, environmental approvals and general working capital.
The company plans to issue the new shares no later than February 23.
Company shares ended trade 1.3 per cent higher at 37.5 cents.