The shares have quadrupled in the last six months to around 1.82p, and the company has satisfied demand for stock by proposing to place 48.53mln shares at 1.7p to raise £825,000.
Proceeds from the share placing will be used to improve local infrastructure to support the development of African Potash’s revenue generative trading operations.
The AIM-listed group has gone from the corporate equivalent of hibernation as potash mine developer to become a fertiliser trader, and the cash will support this strategy.
“Since turning our short-term attention to trading fertiliser and fertiliser constituents, African Potash has transformed itself from an early-stage exploration company into a business capable of capitalising on the immediate and critical need for fertiliser in sub-Saharan Africa, and in so doing, generating revenues and healthy margins – all within the space of six months,” said African Potash's executive chairman, Chris Cleverly.
“I believe our recent announcements detailing our first two fertiliser trades have demonstrated the potential financial rewards for moving into the fertiliser trading market, and it with this in mind that I announce today’s placing, which will support the expansion of African Potash’s trading operations.
“The funds raised will be used specifically to establish infrastructure to enable the company to deliver further transactions with additional parties and in new territories. I look forward to providing further updates to shareholders in due course as we look to swiftly execute our expansion objectives and drive African Potash towards becoming an integrated supplier and trader of fertiliser and fertiliser constituents across Africa,” he added.