PERTH (miningweekly.com) − Potash project developer Elemental Minerals said on Wednesday that it had concluded its initial public offering (IPO) on the TSX, raising some C$53.5-million.
More than 42.4-million shares were issued, at C$1.26 a share. The ASX- and now TSX-listed company said that it had also granted the underwriters the option to purchase an additional number of ordinary shares that was equal to 15% of the number of ordinary shares sold under the IPO.
The over-allotment option was exercisable, in whole or in part, at any time during the 30-day period following the IPO.
“This very successful IPO on the TSX marks a significant milestone in the growth of the company and secures funding for the rapid development of the Sintoukola potash project, through the prefeasibility study that is currently under way, and is expected to be completed by the end of the first quarter in 2012, providing a solid foundation from which to complete the bankable study, planned for completion in the first quarter of 2013,” said Elemental CEO Ian Macpherson.
The Sintoukola potash project, in the Republic of Congo, hosts some 26 exploration holes which were sunk by the previous owners, and which identified both sylvinite and carnallite mineralisation.
Elemental started exploration activities on site during the first quarter of last year, with two drill rigs and associated equipment being mobilised as part of the planned exploration programme.
Macpherson said that the net proceeds from the IPO would be used to further develop the Sintoukola project including additional seismic and drilling exploration, geological analysis and for general corporate purposes.