PERTH (miningweekly.com) – ASX-listed American Pacific Borate and Lithium (ABR) will raise A$3.1-million through a share placement to progress its Fort Cady borate project, in Southern California.
The company will issue more than 17.22-million shares, at a price of 18c each, to institutional and sophisticated investors, with the placement price representing an 11.3% discount to ABR’s ten-day volume weighted average share price.
The placement was done under the company’s existing capacity, and did not require shareholder approval.
ABR is targeting the start of construction at Fort Cady by the fourth quarter of this year, subject to financing.
A December definitive feasibility study considered a three-phase construction, with Phase 1 to deliver some 82 000 t/y of boric acid and 36 000 t/y of sulphate of potash (SoP), at a development cost of $138.2-million.
The Phase 2 operation would increase production to 245 000 t/y of boric acid and 73 000 t/y of SoP, at a capital cost of $191.4-million, while the Phase 3 project would produce 408 000 t/y of boric acid and 109 000 t/y SoP, at an additional capital cost of $186-million.
Based on the three-phased approach, the project would have a mine life of some 21 years.