Agrimin Limited has secured commitments from investors for a share placement to raise nearly $7m for the Mackay Project development in Western Australia.
Furthermore, it will undertake a pro-rata non-renounceable entitlement offer of shares to raise an additional $6.2m before costs.
AustralianSuper is a cornerstone investor to the fundraising process.
Agrimin has planned to advance the development of its 100%-owned Mackay Sulphate of Potash (SOP) Project in Western Australia with the procured investment. The remaining amount will be used for working capital requirements.
After the equity raising, the company has planned to conduct planned activities for pre-feasibility study (PFS), native title negotiations and environmental studies.
Agrimin also intends to perform a definitive feasibility study (DFS) pilot trial, which would be undertaken if the results of PFS are positive.
Agrimin CEO Mark Savich said: “We are delighted to have the opportunity to fast-track the commencement of the DFS pilot trial and other items on the critical path to construction.
“Without pre-empting the outcomes of our ongoing PFS, the board has made the decision to undertake a capital raising of this manner and at this time given the positive results for the project at all levels.”
Agrimin will issue around 16 million shares carrying an issue price of $0.42 per share to raise $7m before costs.
To raise a further $6.2m before costs, it will provide 15 million shares to eligible shareholders at an issue price of $0.40 per share.
The company has completed an extensive laboratory testwork programme on core and brine samples collected from the infill drilling last year.
Currently, Agrimin’s hydrogeological consultants are compiling data to interpret and update the mineral resources and hydrogeological model. This work will upgrade the indicated and inferred mineral resources included in the project’s production plan to the measured and indicated mineral resources categories.