Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF) announced plans to raise C$3.4 million to continue exploration work at its Banio project in Gabon.
The funds will be raised through a private placement of 11.25 million units priced at C$0.30 per unit.
Each unit comprises one common share and one-half of a share purchase warrant exercisable at C$0.40 per share within two years of issuance.
Proceeds from the placement will be allocated to the further exploration and development of Millennial’s Banio Potash Project in Gabon and for general corporate purposes.
The Quaternary Group Ltd., a Singapore-based entity and an insider of Millennial Potash, has committed to acquiring 10 million units in the financing. This participation constitutes a "related party transaction" under Canadian securities laws. However, the transaction is exempt from formal valuation and minority shareholder approval requirements due to its size, representing less than 25% of the company's market capitalization.
To comply with TSX Venture Exchange policies, Millennial Potash is required to secure shareholder approval as The Quaternary Group’s investment would result in it holding more than 20% of the company’s outstanding shares. The matter will be put to a vote during the company’s Annual General Meeting in February 2025.
The financing is expected to close in two stages, contingent on TSX Venture Exchange approval. The second tranche, consisting of units purchased by The Quaternary Group that exceed the 20% threshold, will proceed pending shareholder approval at the AGM.
The Banio Potash Project represents a key focus for Millennial Potash as it advances exploration and development in the resource-rich West African nation of Gabon.