PERTH (miningweekly.com) – ASX-listed Australian Potash will raise up to A$5.2-million through a renounceable rights issue to complete a definitive feasibility study on the Lake Wells potash project, in Western Australia.
The company on Monday said that it would offer three rights shares for every 14 shares held, at an issue price of 8c a share. The company is also offering one free attaching listed option, exercisable at 12c each, on or before August 8, 2021, for every four rights shares subscribed to.
The rights issue will be underwritten for up to A$4.2-million by Patersons Securities, which will also act as lead manager.
A scoping study on the Lake Wells project previously found that it could support a Stage 1 production of 150 000 t/y, and a Stage 2 production of 300 000 t/y, over a 20-year mine life. The project is expected to cost some A$175-million for the Stage 1 development, and a further A$163-million for Stage 2.