The company will use the proceeds from the placement to fund ongoing pre-development activities at its 100% owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia.
The funds will be applied towards finalising the LSOP permitting and approvals process and progressing FEED and optimisation activities.
Notably, APC non-executive chairman Jim Walker participated in the placement by subscribing for 857,142 new shares worth $60,000, subject to shareholder approval.
Long life, high margin SOP producer
Following the release of the Definitive Feasibility Study (DFS) in August 2019, APC is focused on the 6-month FEED Study, finalising offtake discussions and securing financing to develop the LSOP.
The DFS confirmed that the LSOP will be a long life, low capital and high margin SOP producer.
Key outcomes from the DFS include:
- 30-year mine life producing 150,000 tonnes per annum of premium grade SOP;
- Long mine life underpinned by 3.6 million tonne reserve and 18.1 million tonne measured resource; estimate;
- Pre-tax net present value (NPV) of $665 million and an internal rate of return (IRR) of 25%;
- Development capex of $208 million with sector leading capital intensity of $1,387 per tonne; and
- First quartile industry opex of US$262 per tonne providing high cash operating margins.