Skip to main content

Australian Potash raises AUS$10 million in placement

Published by , Editor
World Fertilizer,


Australian Potash has received firm commitments from global institutional, professional and sophisticated investors for a placement of AUS$10 million (before costs), which will be completed by way of a two-tranche placement.

Funds raised from the placement will be applied towards:

  • Pre-development activities at the Lake Wells sulfate of potash (SOP) project in advance of a Final Investment Decision, including:
  • - Drilling of paleochannel production wells including fit-out of headworks and brine pipeline;
    - Commencement of early works for the Lake Wells Village including in-ground services, water treatment plant and power supply;
    - Finalising the syndicated debt facility with the commercial bank ‘club’ which is in addition to the existing undrawn debt facilities;
  • Commencing the maiden DDH programme across the Laverton Downs nickel sulfide target areas following identification of strong EM conductor plates scheduled to commence in May.

Canaccord Genuity (Australia) Ltd. and Euroz Hartleys Ltd. acted as Joint Lead Managers to the placement.

Australian Potash Managing Director and CEO, Matt Shackleton, said, “The heavy institutional and sophisticated investor demand for the offer reflects well on the Lake Wells SOP Projects very robust financial metrics, and supports our transition into development. The LSOP still carries the largest 100% Measured JORC compliant SOP resource across the space, which speaks to the technically de-risked nature of the development. With over 75% by value of construction contracts to be executed under an EPC strategy, long tenor debt that includes NAIF and Export Finance Australia and 100% bore-field brine abstraction, APC’s development strategy provides a clear path to successful operations.”

“In addition to the LSOP, we look forward to unlocking the inherent value in the Laverton Downs nickel sulfide targets with a maiden diamond programme scheduled to commence in May.”


Read the latest issue of World Fertilizer in full for free: May/June 2021

The May/June issue of World Fertilizer begins with a regional report that examines how North American producers are reacting to the gale forces of the marketplace. The remainder of the issue is dedicated to a range of technical articles covering phosphate processing, pump engineering, agitator design, sulfur storage tanks, finishing technologies, granulation and prilling.

Read the article online at: https://www.worldfertilizer.com/project-news/24052021/australian-potash-raises-aus10-million-in-placement/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Fertilizer project news