Find out more about this capital raise
Be the first with the news that moves the market- Fertiliser development company Agrimin (AMN) has entered a trading halt while it plans a capital raise
- It has also signed a binding offtake deal to supply Nitron Group with 115,000 tonnes of sulphate of potash (SOP) per annum from its Mackay potash project in WA
- Agrimin has now committed 60 per cent of its planned SOP production under long-term offtakes which meet the requirements for project financing
- The capital raise may potentially go towards the Mackay potash project, but this hasn’t been explicitly disclosed
- The company expects to come out of the trading halt on January 28 and shares last traded at 42.5 cents on Monday, January 24
Fertiliser development company Agrimin (AMN) has entered a trading halt while it plans a capital raise.
The ASX-lister hasn’t disclosed how much it plans to raise or how it will spend the funds once received, however today’s trading halt was coupled with an offtake announcement.
Agrimin entered a binding offtake deal with Nitron Group for the supply of 115,000 tonnes of sulphate of potash (SOP) per annum at the market price from Agrimin’s Mackay potash project in Western Australia.
Nitron globally trades fertilisers with offices in 15 countries and established distribution networks in markets including Latin America and Africa.
The seven-year agreement with Nitron represents about 25 per cent of Agrimin’s planned SOP production capacity of 450,000 tonnes per annum. It’s also the company’s second offtake deal after the 10-year binding agreement with Sinochem Fertilizer Macao for the supply of 150,000 tonnes per annum of SOP to be sold and distributed in China.
“We are very pleased to have reached this significant agreement with Nitron, which is a highly respected offtake partner with dominant market positions in Latin America and Africa,” CEO Mark Savich said.
“This is our second large tonnage, long-term supply deal and it re-reiterates the considerable interest in Agrimin’s low carbon, organic SOP product. We have now committed 60 per cent of our planned SOP production under long-term binding offtakes which meet the tenure requirements for project financing.”
Agrimin said the agreement was an exciting start to the year and it will now finalise multiple workstreams and advance the Mackay potash project to a final investment decision. Whether or not the upcoming capital raise will support Mackay-related activities is not yet clear.
The company expects to come out of the trading halt on Friday, January 28.
Shares last traded at 42.5 cents on Monday, January 24.
