The company this week reported that it had received commitments for the placement of more than 63-million shares at a price of 11.1c each from institutional and professional investors.

The shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.

“The strong support for the placement is a testament to our Lake Wells SoP project’s appeal as one of this state’s pre-eminent mining-agri projects, positioned as a low cost, high return, ultra low carbon emitting SoP project, which sits comfortably in the lowest quartile of the global cost curve,” said Australian Potash MD Matt Shackelton.

Proceeds from the placement will be used to complete front-end engineering design optimisation, fund minor works associated with the finalisation of the offtake programme, syndicated debt facility and environmental approvals, fund minor pre-development activities and for general working capital.

The A$208-million Lake Wells SoP project could deliver 150 000 t/y of SoP, based on the maiden reserve of 3.6-million tonnes, and would have a mine life of 30 years.