- Potash explorer FYI Resources (FYI) has received firm commitments to raise up to $6 million through a placement
- Up to 30 million fully-paid ordinary shares will be issued to sophisticated and professional investors at 20 cents each
- This price represents an 11 per cent discount to the 15-day volume-weighted average price
- FYI will use the money to advance its strategy to produce high purity alumina (HPA) from its HPA project in Western Australia
- HPA is the high-purity form of aluminium oxide that is used in the production of synthetic sapphire
- This synthetic sapphire is then used in the manufacture of LED lights and scratch-resistant glass for smartphones and watches
- FYI is down 2.22 per cent on the market with shares trading at 22 cents
FYI Resources (FYI) has received firm commitments to raise up to $6 million through a placement.
The potash explorer entered a trading halt late last week but did not disclose how much it would be raising or what it would use the funds for.
Up to 30 million fully-paid ordinary shares will be issued to sophisticated and professional investors at 20 cents each.
This price represents an 11 per cent discount to the 15-day volume-weighted average price.
Shares are expected to settle on December 4 and be allocated on December 7.
Foster Stockbroking will act as Lead Manager and will receive a distribution fee of six per cent of the funds raised as well as four million options with expiry on December 31, 2022, and an exercise price of 30 cents.
FYI will use the money to advance its strategy to produce high purity alumina (HPA) from its HPA project in Western Australia.
HPA is the high-purity form of aluminium oxide that is used in the production of synthetic sapphire.
This synthetic sapphire is then used in the manufacture of LED lights, semiconductor wafers, and scratch-resistant glass used in smartphones and watches.
Additionally, it is used by lithium-ion battery manufacturers as the coating on battery separators to improve performance, longevity and safety.
The money will also go towards progressing the Alcoa joint venture, furthering HPA product marketing, working capital, and costs associated with the placement.
FYI is down 2.22 per cent on the market with shares trading at 22 cents at 12:28 pm AEDT.