re: Ann: Elemental Successfully Completes A$3... By: Esmarie Swanepoel
19th May 2014
TEXT SIZE Text Smaller Disabled Text Bigger
PERTH (miningweekly.com) – Junior potash explorer Elemental Minerals has raised about A$3.1-million through a share placement to sophisticated and institutional investors.
ASX- and TSX-listed Elemental priced the share placement at 25c a share, which was an 11% premium to the closing price of Elemental shares on May 16.
“The successful raise, at a premium to the market price, is particularly pleasing given the tough market conditions experienced by junior miners,” said CEO Iain Macpherson.
Elemental would use the funds to supplement its treasury and to advance its Kola project and Dougou prospect, both of which form part of the larger Sintoukola project, in the Republic of Congo.
“The quality and strategic nature of the Sintoukola project has ensured that we were able to secure this funding, which coupled with the recent transaction through with Harlequin, once of the company’s founding shareholders, acquired Pala’s stake in full at a very significant premium of A$0.3407 a share, puts the company firmly on course to execute on its recently announced new development strategy and conclude negotiations with a strategic partner that will enable future development of the project,” said Macpherson.
The Sintoukola project has the potential to be among the world’s lowest cost potash producers.
A prefeasibility study has shown that the project could deliver about two-million tons a year of muriate of potash. The underground operation was expected to have a mine life of 23 years. The project could be developed at a total capital cost of $1.85-billion, and would have a net present value of $2.9-billion, and an internal rate of return of 29.3%.
Elemental was targeting initial potash production by 2017 and to reach full capacity in 2018.
- Forums
- ASX - By Stock
- K2P
- Ann: Elemental Successfully Completes A$3.1M Shar
Ann: Elemental Successfully Completes A$3.1M Shar, page-14
-
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add K2P (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online