- BCI Minerals (BCI) launches a $360 million capital raising to develop its Mardie Project in Western Australia
- The capital raising will consist of a placement, a share purchase plan (SPP) and the issue of convertible notes
- Under the placement, $240 million will be raised with majort support received from existing shareholder Wroxby and new investor AustralianSuper
- The share purchase plan will raise $20 million, while the issue of the convertible notes will raise the remaining $100 million
- BCI is steady on the market with shares trading at 48 cents
BCI Minerals (BCI) has launched a $360 million capital raising to develop its salt and potash Mardie Project in the Pilbara region of Western Australia.
The company entered a trading halt on November 17 but did not disclose how much it intended to raise or what it would use the funds for.
The capital raising will consist of a placement, a share purchase plan (SPP) and the issue of convertible notes.
Under the placement, $240 million will be raised with commitments received from existing shareholder Wroxby and new investor AustralianSuper for $110 million and $75 million, respectively.
The balance will be underwritten by Canaccord Genuity.
Shares will be priced at 43 cents which represents a 10.4 per cent discount to BCI’s closing price of 48 cents on November 16 and a 10.6 per cent discount to the 10-day volume-weighted average price of 48.1 cents.
BCI will also be undertaking a share purchase plan to raise $20 million with the ability to accept oversubscription.
Eligible shareholders will be able to apply for up to $30,000 worth of shares, which will be priced the same as the placement of 43 cents.
The SPP will open on November 26, close on December 17 and shares are expected to be issued on December 24.
Under BCI’s election, up to $100 million worth of convertible notes may be issued to AustralianSuper throughout 2022.
Each note will be exercisable at 62.35 cents, which is a 45 per cent premium to the placement price.
As part of this transaction, BCI will purchase AustralianSuper’s holding in Agrimin (AMN) and Highfield Resources (HFR).
BCI will use the funds to develop its Mardie Salt & Potash Project, which is on track to become the first new solar salt operation in WA in 25 years.
Chairman Brian O’Donnell commented on the equity raising.
“The strong support from existing shareholders and new investors underscores the merits of the Mardie Salt & Potash Project as a long term, sustainable and integrated opportunity,” Mr O’Donnell said.
BCI was steady on the market, with shares trading at 48 cents at 12:45 pm AEDT.