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Centrex raises cash for Ardmore

6th April 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Centrex will raise A$16-million through a share placement to support the development of the Ardmore phosphate project, in Queensland.

The company will place 57.1-million ordinary shares to institutional, professional and sophisticated investors, priced at 14c a share, to raise an initial A$8-million. The shares will be issued under Centrex’s existing placement capacity.

The company will also undertake a 5-for-42 pro-rata, non-renounceable entitlement offer to eligible shareholders, raising a further A$8-million. The entitlement offer will also be priced at 14c a share, with the offer price representing an 11.8% discount to Centrex’s 15-day volume weighted average share price.

“We are delighted with the strong support we have received for the capital raising from high-quality new and existing sophisticated and institutional investors,” said Centrex MD Robert Mencel.

“The capital raising marks an important milestone for the company, allowing us to continue to develop the Ardmore project at a time of globally high rock phosphate prices. The capital raised will allow Agriflex to grow Ardmore’s resource and reserves, lift production levels, reduce operating costs and increase the project’s value.”

A 2021 updated definitive feasibility study into the Ardmore project found that the project would require a capital investment of A$78-million to produce 800 000 t/y of phosphate rock, with the project estimated to have a net present value of A$166-million and an internal rate of return of 52%, generating gross revenues of A$1.45-billion.

Edited by Creamer Media Reporter

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