- Australian Potash (APC) receives firm commitments to undertake a two phase placement to raise roughly $12 million
- All up, 150 million share will be issued under both phases, priced at eight cents each – representing a 30.4 per cent discount to APC’s closing price of 11.5 cents on October 28
- The company will also be undertaking a share purchase plan to raise up to $2 million with eligible shareholders able to subscribe for up to $30,000 worth of shares
- Money from both the placement and SPP will be used to advance the Lake Wells Sulphate of Potash Project through to a final investment decision
- Shares in Australian Potash are down 19.1 per cent and are trading at 9.3 cents
Australian Potash (APC) has received firm commitments to undertake a two-phase placement to raise roughly $12 million.
The company entered a trading halt on October 29 but did not disclose how much it intended to raise or what it would use the funds for.
Phase one of the placement will issue 97,488,039 shares priced at eight cents to raise $7.8 million.
This offer price represents a 30.4 per cent discount to Australian Potash’s closing price of 11.5 cents on October 28 and a 27.3 per cent discount to the 20-day volume-weighted average price of 11 cents.
Phase two, which is subject to shareholder approval, will issue 52,511,961 shares to raise the remaining $4.2 million.
Australian Potash also intends to undertake a share purchase plan (SPP) to raise up to $2 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares, which will be priced the same as the placement of eight cents.
The SPP will open on November 22, close on December 13 and shares to be allocated on December 17.
Australian Potash will use the money from both the placement and SPP to advance the Lake Wells Sulphate of Potash (SOP) Project through to a final investment decision.
CEO and Managing Director Matt Shackleton went into further detail about the use of the funds.
“Funds raised from this placement and SPP will allow APC to continue to develop and de-risk the Lake Wells SOP Project over the coming months,” Mr Shackleton commented.
“Our progressive de-risking strategy, when applied to the mineral resource, is to continue developing bores, pump-testing those bores and then reconciling recorded flow rates back to the hydro-model, which is effectively our mine development plan.”
Shares in Australian Potash were down 19.1 per cent and were trading at 9.3 cents at 12:44 pm AEDT.