PERTH (miningweekly.com) – Potash developer BCI Minerals on Monday announced a A$48-million capital raise to allow for the start of early construction at the Mardie salt and potash project, in Western Australia, and to order long lead items.
The junior company is undertaking a one-for-two fully underwritten, accelerated non-renounceable entitlement offer priced at 24c each. The offer price represents an 8% discount to the company’s 15-day volume weighted average share price.
The entitlement offer will entail a retail and institutional component.
The institutional offer will open on September 14, while the retail component will open on September 18 and will close on October 6.
BCI on Monday said that shareholder Wroxby, which holds a 29% interest in the company, has committed to taking up its full pro rata entitlement of some A$14-million, and has provided sub-underwriting for up to a further A$19.3-million, being 70% of any shortfall of the entitlement offer.
“Funds from the entitlement offer will enable BCI to commence early construction work and order long lead items which will result in an accelerated development schedule for the Mardie salt and potash project,” said MD Alwyn Vorster.
“We are pleased with the level of support received from existing shareholders, providing further confidence for the larger funding task ahead of BCI in 2021.”
The A$498-million Mardie project is expected to produce more than four-million tonnes a year of high purity salt and 100 000 t/y of potash fertiliser a year.
BCI is anticipating full project construction to start in the second quarter of 2021, subject to a final investment decision and the final funding being secured.