logo-loader

Crystal Peak shares jump after EMR exercises warrants-to-shares

Last updated: 12:36 02 May 2016 EDT, First published: 07:36 02 May 2016 EDT

shutterstock_273474905
EMR plans bigger stake in potash maker

Crystal Peak Minerals (CVE:CPM, OTCQX:CPMMF) shares advanced by more than 6% on Monday after announcing that investor EMR Capital Resources Fund 1, LP was increasing its shareholding with an at-premium exercise of warrants and further private placement of shares plan in the potash-to-lithium group.

The Canadian company said that EMR exercised its full contingent of 34,516,129 warrants at a price of C$0.4243 per common share for gross proceeds of C$14.65mln as outlined in a May 29, 2015, agreement.

Crystal Peaks shares spent much of the first quarter at around C$20. Since mid-March, they began to advance steadily and were last seen up 6.7% on the day at C$0.32. Exercising the warrants at $0.4243 marks a considerable premium over their share price on Friday at C$0.30.

In addition, Crystal Peak Minerals said it is concluding negotiations with EMR for an additional non-brokered, private placement investment of 12,620,331 common shares  at a price of $0.4243 per common share for gross proceeds of C$5.35mln. The offering remains subject to the execution of definitive agreements and TSX Venture Exchange approval.

Assuming the offering is completed, EMR will increase its holdings in the company from approximately 37.6mln shares to around 84.8mln shares, representing a change from approximately 25.2% to around 43.2% of Crystal Peak's shares.

As a result of this increased shareholding, EMR will be entitled to appoint an additional nominee director to be approved by shareholders at the Annual General Meeting on June 21.

Crystal Peak intends to use the funds received from EMR's exercise of its warrants and any funds received from the offering to fund the continuing development programme on its premium specialty fertiliser project on the Sevier Playa in southwestern Utah, USA.

This would include advanced work identified in its Preliminary Feasibility Study, efforts to complete its feasibility study, an Environmental Impact Statement and other permitting, the repayment of debt, including the loans with Extract Capital and certain directors of the company which will be repaid immediately with the proceeds from the warrant exercise, and for general working capital purposes.

Last month Crystal Peal announced it was considering a move into the lithium sector. See story.

"This is a true vote of confidence in our project and we are extremely pleased that EMR continues to support our efforts," said Lance D'Ambrosio, Chief Executive Officer of Crystal Peak.

"With EMR's track record of developing resource properties, we look forward to working with them as we move our project past the feasibility study and into the construction-ready stage. Also, I'd like to add that Extract Capital has been a great partner to work with these past two years and we thank them for their support."

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 27 minutes ago