BCI launches A$360m capital raise for Mardie
PERTH (miningweekly.com) – Potash developer BCI Minerals has launched a A$360-million capital raising to help fund the development of its Mardie potash project, in Western Australia.
The capital raise will consist of a A$240-million share placement, priced at 43c a share, including commitments from existing shareholder Wroxby to subscribe for A$110-million of the shares, and a A$75-million subscription from new investor AustralianSuper.
The company would also raise a planned A$20-million through a share purchase plan, which will be sub-underwritten by AustralianSuper, with the ability to accept oversubscriptions.
Furthermore, at its election, BCI could issue up to A$100-million in convertible notes to AustralianSuper, with an exercise price of around 62.35c each, representing a 45% premium to the placement offer price.
As part of the transaction, BCI will purchase AustralianSuper’s shareholdings in ASX-listed Agrimin and Highfield Resources, funded by the issue to AustralianSuper of Series 1 convertible notes with an exercise price of 62.35c.
The proposed capital raise followed an announcement by BCI in October that it had secured A$740-million in debt funding for the development of the A$1.2-billion Mardie project, with the package including a A$490-million, 15-year facility from the Northern Australia Infrastructure Facility and a A$110-million, 10-year facility from Export Finance Australia.
“Achieving the full A$1.2-billion Mardie funding solution is a major milestone in BCI’s history. The strong support from existing shareholders and new investors underscores the merits of the Mardie salt and potash project as a long term, sustainable and integrated opportunity,” said chairperson Brian O’Donnell.
The Mardie project is anticipated to produce 5.35-million tonnes a year of salt and 140 000 t/y sulphate of potash, over a projected mine life of at least 60 years.
Subject to shareholder approvals at a general meeting scheduled for December 20, and final statutory approvals, the funding solution will allow construction at Mardie to start in early 2022.
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