- American Pacific Borates (ABR) has completed a placement of $2.75 million with funds to go to the Fort Cady Borate Project
- More than 19 million shares were issued at a price of 25 cents apiece
- Funds raised will be primarily used towards paying for long lead items for the Fort Cady Borate Project such as centrifuges, natural gas connection and the crystalliser
- The company remains on track to begin initial civil works by the end of the year
- ABR has ended the day 1.82 per cent in the red with shares trading for 27 cents apiece
American Pacific Borates (ABR) has completed a placement of $2.75 million with funds to go to the Fort Cady Borate Project.
Shares were priced at 25 cents apiece and were sent to three global institutional investors.
The placement was completed at a 4.4 per cent discount to the 10 day volume-weighted average price of 26.1 cents.
A total of 11 million ordinary shares and more than 9.1 million options are to be issued.
Funds raised will be primarily used towards paying for long lead items for the Fort Cady Borate Project such as centrifuges, natural gas connection, Manheim furnaces and the crystalliser.
Fort Cady is located in Southern California and is a highly rare and large colemanite deposit with substantial lithium potential and is the largest known contained borate occurrence in the world not owned by Rio Tinto or Eti Maden.
The project has a JORC mineral resource estimate of 120.4 million metric tonnes at 6.5 per cent boric anhydride and 340 parts per million lithium.
More than US$60 million (AUD$88 million) has been spent at Fort Cady which has included resource drilling, metallurgical test works, permitting activities, well injection tests and substantial pilot-scale test works.
Furthermore, under the Amvest convertible notes, ABR must repay 23 equal monthly instalments via cash or the allotment of ordinary shares.
The Board has determined it will repay these instalments via cash to limit further dilution in the short term.
The first cash repayment to Amvest was made on December 6.
ABR is now continuing to target commencement of initial civil works for Fort Cady by the end of the year.
ABR has ended the day 1.82 per cent in the red with shares trading for 27 cents apiece in a $57.53 million market cap.