Potash West raises $1.5 million

THE BOURSE WHISPERER: Potash West has collected a boost to the company coffers after receiving firm commitments of $1.5 million (before costs) for a private placement of just under 6.7 million shares at 22.5 cents per share.

The company said the placement was managed by Stellar Securities and was strongly supported by a mixture of its clientele of sophisticated investors.

Potash West indicated the funds raised by the placement will used to:

–    Put in place patents and other protections for the processes developed as part of Potash West’s studies into process development of the Dandaragan Trough glauconite project in Western Australia:

–    Further the potential exploration and development of pending acquisitions; and

–    Further the working capital of the company.

“To conclude this raising so successfully in what is a very tough market is an endorsement of the strength of the Dandaragan Trough glauconite project and Potash West’s management, board and strategy,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.

“While the focus of the company will remain strongly on driving the Dandaragan project to feasibility and production, the additional funds will be used to protect the valuable IP (intellectual property) we have created as part of the process development work and to evaluate projects that may benefit from the technology.”

Potash West is working up its world scale sized glauconite deposits present in the Dandaragan Trough, which commences less than 60 kilometresm to the north of Perth.

The company is evaluating and comparing a range of different process routes for potash extraction from Glauconite.

Potash West said that as part of this, significant new and innovative intellectual property (IP) the company has created, it is currently carrying out and investigations as to how to use this IP for maximum benefit for its shareholders.