Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Aim-listed African Potash plans to kick off a maiden drilling campaign and exploration programme at its Lac Dinga potash project, in the Republic of Congo, during the third quarter of the year after securing the financial and technical resources.
The group raised about $1.7-million through a conditional placing of 53.7-million new ordinary shares at 1.9p apiece to fund the Phase 1 drilling programme, which was designed to further the understanding of potash mineralisation and determine the resource potential of the Lac Dinga project.
The campaign comprised the drilling of two holes at predetermined targets on the project in September.
“The funds raised today, coupled with the engagement of Hedgestone Advisory, a company owned and run by mining and logistics entrepreneur Paul Quirk, … strengthens our ability to rapidly implement our exploration plans for 2014 and begin to determine the resource potential of Lac Dinga,” explained African Potash CEO Edward Marlow on Monday.
African Potash finalised a $300 000 camp build, logistics support and operations-management agreement with Hedgestone, which would lead and facilitate the infrastructure and logistics operations supporting an initial exploration programme at Lac Dinga.
In an effort to conserve cash, the agreement was structured so as to issue new ordinary shares as consideration for services.
The arrangement also promoted “continued alignment” among African Potash, Hedgestone and Quirk.
Under the terms of the agreement, an initial payment of $150 000 would be made through the issue of 4.6-million shares, followed by a further payment of $150 000 on completion of the Phase 1 drilling and exploration programme through the issue of another 4.6-million shares.