PERTH (miningweekly.com) – Sulphate of potash (SOP) project developer Agrimin will raise some A$13.2-million through a share placement and nonrenounceable entitlement offer to advance its Mackay project, in Western Australia.
The ASX-listed junior on Tuesday announced that it will raise an initial A$7-million through a share placement, with some 16.66-million shares to be issued at a price of 42c each, to institutional and sophisticated investors.
The share placement will be made under the company’s existing capacity and will not require shareholder approval.
In addition, Agrimin will offer a one-for-nine pro-rata nonrenounceable entitlement offer of some 15.6-million shares, priced at 40c each, to raise a further A$6.2-million.
Following the capital raising, Agrimin will be funded to undertake its current prefeasibility study (PFS) plans at Mackay, as well as native title negotiations and environmental studies. The company will also accelerate the definitive feasibility study (DFS) pilot trial and, should the outcome of the PFS prove positive, will be funded to undertake a DFS.
“We are delighted to have the opportunity to fast-track the commencement of the DFS pilot trial and other items on the critical path to construction,” said Agrimin CEO Mark Savich.
“Without pre-empting the outcomes of our ongoing PFS, the board has made the decision to undertake a capital raise in this manner and at this time, given the positive results of the project at all levels.”
Mackay has an indicated mineral resource of 4.3-million tonnes and an inferred mineral resource of 18.9-million tonnes of SOP.