Agrimin Ltd. is looking to raise up to about A$13.2 million through a share placement and a pro rata nonrenounceable entitlement offering to advance its MacKay sulfate of potash project in Western Australia and for general working capital.
The company said March 28 that it secured commitments for the placement of 16,666,667 Agrimin shares at 42 Australian cents apiece to institutional and sophisticated investors, for a total of about A$7 million, and that it will undertake a 1-for-9 pro rata nonrenounceable entitlement offering of 15,617,249 shares at 40 cents each to eligible shareholders to raise approximately A$6.2 million.
Agrimin's entitlement offer is expected to close April 24, and the proceeds from the financings will allow the company to fund activities relating to the Mackay project's pre-feasibility study, native title negotiations and environmental studies.
The project's pre-feasibility study is on track for completion in October and the company also plans to accelerate a definitive feasibility pilot trial for Mackay, which will consist of long-term pumping tests and evaporation trials.
Planning and permitting for the pilot trial are well advanced, and Agrimin further said it is funded to undertake a definitive feasibility study for the project should the results of the pre-feasibility study be positive.