Australian Potash advances its Lake Wells sulfate of potash project
Published by Pippa Luck,
Editorial Assistant
World Fertilizer,
Australian Potash Ltd has announced that it has received firm commitments for US$7 million through a placement of over 63 million fully paid ordinary shares (placement shares) at an issue price of 11.1 cents each (placement). The bookbuild was oversubscribed with strong demand from institutional and professional investors.
The placement shares will be issued on the same terms as, and rank equally in all respects with, the existing fully paid ordinary shares in the company. Over 14 million placement shares will be issued under the company’s 15% placement capacity under ASX listing rule 7.1, and over 48 million placement shares will be issued under the company’s 10% placement capacity under ASX listing rule 7.1 A. Settlement is expected on or around 10 November 2020.
Matt Shackleton, Managing Director of APC said: “APC are very pleased by the high demand and institutional investors taking note before key catalysts materialise over the coming quarter.
“The strong support for the placement is a testament to our Lake Wells SOP project’s appeal as one of this state’s pre-eminent mining-agri projects, positioned as a low cost, high return, ultra-low carbon emitting SOP project, which sits comfortably in the lowest quartile of the global cost curve.
“The placement delivers a strong balance sheet for the company. Finalising the EPA approvals pathway, presenting further offtake agreements and finalising the syndicated debt facility, with NAIF, commercial lenders and recently EFA now rounding out due diligence, positions the company and the project exceptionally well leading into 2021.”
Euroz Hartleys Ltd and Canaccord Genuity (Australia) Ltd are joint Lead Managers to the Placement.
Proceeds from the placement will be applied towards:
- The completion of the front-end engineering design (FEED) optimisation programme at the company’s 100% owned Lake Wells sulfate of potash project (LSOP) in Western Australia;
- Minor works associated with the finalisation of the offtake programme, syndicated debt facility (including NAIF), EPC contracting, and EPA approvals process;
- Minor pre-development activities;
- General working capital purposes.
Read the article online at: https://www.worldfertilizer.com/potash/03112020/australian-potash-advances-its-lake-wells-sulfate-of-potash-project/
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