THE BOURSE WHISPERER: Australian Potash (ASX: APC) has completed a bookbuild for a placement to institutional, sophisticated and professional investors to raise up to $3 million.
Australian Potash said the raising attracted an oversubscribed placement of 30 million fully paid ordinary shares (New Shares) at an issue price of 10 cents.
The company announced a subsequent Share Purchase Plan (SPP) to raise around $2 million to be offered to eligible shareholders and Bonus Loyalty Option Issue for shareholders on the register at 29 September 2017.
Funds raised will be used to advance the company’s 100 per cent-owned Lake Wells sulphate of potash (SOP) project and the 100 per cent-owned Yamarna gold project.
Work will continue to advance progress of the Lake Wells Feasibility Study, including the installation of a further four SOP brine production bores, brings total installed to seven.
Other work will entail a long-term production bore test pumping program of 3 to 6 months, the commissioning of a large scale five pond pilot evaporation program as well as Resource extension through exploration target estimate on a recently acquired palaeochannel extension.
At the Yamarna gold project APC is accelerating gold exploration programs involving further exploration work across 18 priority gold targets (9 high priority gold targets) with the first drilling of higher ranked targets expected to commence in the second half of this year.
The Yamarna work follows the recent announcement by neighbour Gold Road Resources (ASX: GOR) at the Ibanez prospect of gold results two kilometres south-east of Australia Potash’s tenement holding.
“APC will continue to aggressively progress the study phase of the Lake Wells SOP project,” Australian Potash executive chairman Matt Shackleton said in the company’s announcement to the Australian Securities Exchange.
“We have defined the largest indicated SOP resource estimated in Australia to date, developed early stage relationships in the largest market for SOP through MoUs and completed a scoping study with very strong economics.
“The scoping study confirmed a conventional, proven abstraction method to produce a high quality SOP product in the bottom of the global cost curve.
“APC’s key focus is on positioning the company to deliver a strong Feasibility Study in H1 CY2018 that confirms the potential for a high returning project and positions Lake Wells as a superior Australian Sulphate of Potash project.
“In addition, funding will be applied to commencing exploration at the Yamarna gold project, following up the extremely positive findings of CSA Global’s report on the gold prospectivity of APC’s northern Yamarna greenstone tenements.
“The company’s Yamarna tenements run contiguously north of and 65 kilometres along strike from neighbouring explorer Gold Road Resources.
“That company has successfully delineated several million ounces of gold across several project areas, including the Gruyere mine currently under development.”