PERTH (miningweekly.com) – ASX-listed Agrimin has raised A$10-million through a share placement to institutional and sophisticated investors to fund the definitive feasibility study for its Mackay sulphate of potash (SOP) project, in Western Australia.
The company on Thursday said that it placed 12.5-million shares at a price of 80c each. The shares were placed under its existing capacity, and did not require shareholder approval.
Following the placement, Australia’s largest superannuation fund, AustralianSuper, will have a 14% shareholding in Agrimin.
The proceeds from the placement will be used to advance studies at Mackay, as well as to advance the proposed logistics infrastructure and for general working capital.
A prefeasibility study estimated that the SOP project could deliver an average 426 000 t/y over an initial mine life of 20 years.
Meanwhile, while work is being completed on the project’s definitive feasibility study, Agrimin will advance offtake discussions as well as strategic partnership discussions.