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Australian Potash raises $2 million from share placement; launches $3.15 million rights issue

Funds will be applied towards activities including progressing APC’s ongoing front-end engineering design (FEED) work at the Lake Wells Sulphate of Potash Project.

Australian Potash Ltd - Australian Potash raises $2 million from share placement: launches $3.15 million rights issue
APC is finalising commercial discussions around offtake and project debt facilities

Australian Potash Ltd (ASX:APC) has received firm commitments to raise $2 million through a placement of shares at 5 cents each.

The bookbuild was oversubscribed with strong demand from sophisticated and professional investors.

APC will also undertake a pro-rata renounceable rights (or entitlements) issue to raise up to $3.156 million before costs on the same terms as the placement.

Proceeds from the placement and rights Issue will be applied towards progressing ongoing front-end engineering design (FEED) activities at the company’s 100% owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia, finalising commercial discussions around offtake and project debt facilities, and general working capital.

Indicative timetable of rights issue

APC managing director Matt Shackleton said: “The most pleasing aspect of the very strong support for the placement of new shares is that our near-term milestone targets are well understood.

“Building on the 70,000 tonnes per annum binding offtake term sheets already announced, the Offtake Program to contract the remaining balance to reach the target of 125,000 – 135,000 tpa of our projected 150,000 tpa output is well advanced.

“Our Approvals Pathway through the Environmental Protection Authority (EPA) is highly visible, and firmly on track.

“APC considers full-scale commercial development approval through the EPA prior to allocating capital to project development as the least-risk approvals process.

Project financing has commenced

Shackleton added: “And with the NAIF conducting due diligence on the LSOP, the Project Financing program has commenced in earnest, with financing providers in Australia and internationally.

“We very much look forward to the continued participation of our existing and new shareholders in this active and exciting period for the LSOP, with, in addition to the above, results of the FEED Optimisation program targeted for H2.”

Quick facts: Australian Potash Ltd

Price: 0.16 AUD

ASX:APC
Market: ASX
Market Cap: $77.85 m
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