- Sulphate of potash developer Australian Potash (APC) has entered a trading halt ahead of a capital raise
- Prior to entering the halt, Australian Potash released its financial report for the September quarter
- The company progressed approvals and offtake agreements for its Lake Wells Sulphate of Potash Project as well as exploration work at its Lake Wells Gold Project
- While it is uncertain how much the company is looking to raise, APC ended the quarter with just under $1.4 million in cash — meaning it could benefit from a cash boost
- Company shares last traded for 13 cents on Friday, October 30
Australian Potash (APC) has entered a trading halt ahead of a capital raise.
The company will remain in a trading halt until the earlier commencement of trading on Wednesday, November 4, unless details of the funding are released earlier.
Prior to entering a trading halt, Australian Potash released its financial report for the September quarter.
Much of the quarter was spent focusing on its wholly-owned Lake Wells Sulphate of Potash Project (LSOP) and its Lake Wells Gold Project (LWGP) which is held in a joint venture with ASX lister, St Barbara (SBM).
Pleasingly, APC signed two offtake agreements with Mitsui and HELM AG for the LSOP. Each of the companies agreed to offtake of 30,000 tonnes per annum of K-Brite sulphate of potash from Lake Wells to distribute into Asia (Mitsui) and Europe (HELM AG).
The Environmental Protection Authority also showed its support by recommending to the Minister for the Environment that the LSOP project should be approved for development.
“We anticipate that in operation, the LSOP will be the lowest carbon footprint SOP project in Australia, and possibly the world,” Managing Director and CEO Matt Shackleton said.
At the LWGP, St Barbara began exploration programs with over 200 aircore holes drilled and pleasing results have been received. Total drilling will be scaled up to 30,000 metres.
At the end of the quarter, Australian Potash had just shy of $1.4 million, which is noticeably less than the $3.38 million it started with.
Company shares last traded for 13 cents on Friday, October 30.