- BCI Minerals (BCI ) is set to launch a $48 million entitlement offer to fund the development of its Mardie salt & potash project in WA
- Shares will be priced at 24 cents each, representing an eight per cent discount to the 15-day volume-weighted average price of 26.1 cents
- The offer already has strong support from institutional investors, several of which have subscribed for their full entitlements and partially sub-underwritten any potential shortfall
- The retail component of the offer will open on Friday, September 18
- Funds raised from the entitlement offer will be used for early construction works at Mardie, with the final construction phase slated for Q2 2021
- BCI Minerals is in a trading halt until Wednesday; shares were last priced at 25.5 cents on September 11
BCI Minerals (BCI ) is set to launch a fully underwritten $48 million entitlement offer to fund development of its Mardie salt & potash project in WA.
The one-for-two accelerated non-renounceable offer will have both institutional and retail components.
Strong institutional support
The offer has already received strong support from key institutional investors.
Wroxby — BCI’s main shareholder with a 29 per cent stake — will take up its full pro rata entitlement of approximately $14 million. Wroxby will also provide sub-underwriting for up to a further $19.3 million, or around 70 per cent of the potential shortfall.
Other large shareholders with a combined voting power of approximately 13 per cent will also take up their full pro rata entitlements, totalling $6.2 million. They will also provide additional sub-underwriting commitments for the remaining 30 per cent of the potential shortfall.
Shares will be priced at 24 cents each, representing an eight per cent discount to the 15-day volume-weighted average price of 26.1 cents.
The retail component of the offer will open on Friday, September 18.
Mardie Project
The definitive feasibility study for the Mardie project was completed in July, meaning there’s a clear pathway forward for the project.
Funds raised from the entitlement offer will be used for early construction works, including the trial pond, seawater pump station, major roads, accommodation, some power supply facilities, and for the ordering of long lead time items, like pumps.
Pending the board’s final investment decision and the additional funding required, the final construction phase at Mardie is slated to go ahead in the second quarter of 2021.
BCI Minerals is in a trading halt until Wednesday; shares were last priced at 25.5 cents on September 11.