JOHANNESBURG (miningweekly.com) – ASX-listed Fertoz is raising A$4.3-million in a “heavily oversubscribed” placement of 30.7-million shares, at A$0.14 apiece.
The proceeds from the capital raise will be used to strengthen the balance sheet as the company develops its British Columbia phosphate project and focuses on accelerating sales of organic phosphate into the North American organic farming markets.
The placement will be completed in two tranches, the first of which is aimed at raising $1.42-million from 10.2-million ordinary shares and 5.1-million options on August 5.
Tranche 2 will seek to raise $2.87-million from 20.5-million ordinary shares and 10.2-million options in early September.
Fertoz MD Stephen Keith said on Tuesday that 2016 would be a “truly transformative year” for the company, with all efforts focused on increasing sales of its high-margin organic certified phosphate.
The company aims to sell 10 000 t and to ramp up its sales and marketing efforts in 2017.