Australian Potash Ltd (ASX:APC) has closed the pro-rata renounceable rights offer made to shareholders last month.
The offer was partially underwritten by Patersons Securities Limited to $4.2 million, who has also acted as lead manager.
Australian Potash has confirmed subscriptions for the offer as follows:
On completion of the offer, the amount raised will be $4.2 million.
READ: Australian Potash implementing final stages of DFS work plan
A definitive feasibility study (DFS) is underway for Australian Potash’s Lake Wells Sulphate of Potash (SOP) Project in Western Australia.
Lycopodium Minerals Ltd is currently completing plant design, capital and operating costs estimates, and an implementation plan for the DFS.
Australian Potash’s Lake Wells scoping study demonstrated the company’s potential to become a significant producer of low-capital and high-margin SOP with a project that had a 20-year life.
Stage-one production levels were 150,000 tonnes a year between years 1 and 5 while the stage-two rate of 300,000 tonnes a year would extend from year 6 to year 20.
Using a SOP price of $795 a tonne, life-of-mine annual operating pre-tax cash flow was put at $118 million.