PERTH (miningweekly.com) – Phosphate developer Fertoz will raise A$5-million in a share placement to sophisticated and professional investors to accelerate the development of its Fertoz Carbon division.
The company on Thursday said that it had received firm bids for the placement of more than 33.33-million shares, at a price of 15c each.
The placement will be completed in two tranches, with the first 20-million shares to be issued under Fertoz’s existing placement capacity. The second tranche of 13.33-million shares will be subject to shareholder approval.
Fertoz said on Thursday that it would use the placement proceeds to accelerate the development of its Fertoz Carbon division, which will focus on carbon sequestration, consulting activities, trading and implementation of carbon strategies using the company’s organic fertilisers as a key input in improving soil health and carbon accretion.
“Our Carbon division is an exciting growth opportunity for Fertoz, and we are pleased to receive strong support from new and existing shareholders to enable us to accelerate its development,” said executive chairperson Patrick Avery.
“Carbon credits are a growing trend right now and we want to capitalise on our position to be a leader in this field. Our Carbon division has already proved popular with customers and will greatly enhance our environmental and social governance credentials.
“In addition, completing this A$5-million placement will enable us to grow our sales team in North America, and it is important to us to continue to scale up our organic fertilizer operations as the foundation of our business across multiple regions.”