HK firm ups stake in Kazakhstan Potash to 25 per cent
- by: Prashant Mehra
- From: Business Spectator
- June 05, 2015 1:23PM
Hong Kong-listed steel trader Burwill Holdings has raised its stake in troubled miner Kazakhstan Potash Corp to nearly 25 per cent after a share placement worth $6 million.
This follows a share placement worth $20m last month.
Burwill will acquire 30m shares in Kazakhstan Potash, on top of the 100m shares it already owns. All shares were issued at 20c each, at a premium to the company’s last traded price of 14c a share. The funds will be used for working capital, the miner said.
Kazakhstan Potash, previously known as Fortis Mining, holds rights to two potash salt deposits in Kazakhstan, and is in talks to acquire another deposit there held by Gordon Toll-backed Satimola. T
he company, run by Chinese businesswoman Fraeda Cheung, has struggled for cash in recent months and is currently in talks to end a dispute with Satimola and settle the acquisition.
