THE BOURSE WHISPERER: Potash West (ASX: PWN) resumed trading after the announcement of a completed placement, managed by State One Equities, to institutional, professional and sophisticated investors, raising $1.7 million by issuing 57 million shares at 3 cents each.
Potash West said it had received applications for well over $3 million, which it indicated would be accommodated, at the discretion of directors, subject to a shareholder meeting, scheduled for September 2016.
In addition to the raising Potash West said it will commence a Share Purchase Plan to allow all shareholders to purchase shares on the same terms as this placement.
Potash West said the strong support for the offer was a vote of confidence for the company as well as its Dinner Hill and various other projects, including development strategies for Dinner Hill and the Dandaragan Trough.
These include a Stage 1 phosphate project and a second stage producing Potash and other minerals, using the company’s 100 per cent-owned, K-Max process technology.
On the corporate front Potash West holds 55 per cent of East Exploration Pty Ltd, which currently in the process of being sold to Davenport Resources, which plans to list on the ASX in Q3 2016.
Potash West shareholders will have a priority entitlement at that IPO.
The company also holds 97 million shares in ASX-listed Platypus Minerals, a company focused on lithium extraction.
“We welcome new investors from State One and look forward to working with them to add value for our shareholders,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.
“Net proceeds from the raising will be used for project and process development for Dinner Hill, project evaluation and working capital.”