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Harvest Minerals raises £9.7mln in oversubscribed placing as orders roll in

Last updated: 15:30 11 Jun 2018 BST, First published: 07:51 11 Jun 2018 BST

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KPfértil is an organic fertiliser and remineraliser

Harvest Minerals PLC (LON:HMI) has raised £9.712mln from an oversubscribed share placing providing funds to strengthen its balance sheet while it ramps up operations at the Arapua fertiliser project in Brazil.

Following an accelerated bookbuild, the AIM-listed firm said 52.497mln shares were placed with certain existing and new institutional and other investors at a price of 18.5p per share.

READ: Harvest Minerals says Ministry of Agriculture in Brazil has conditionally approved KPfértil as a remineraliser

In late afternoon trading, Harvest Minerals' shares were changing hands at 22.25p each, down 1.2% on Friday's close.

Harvest said the funds will primarily be used to support the continued development and expansion of production facilities at the company's Arapua Fertiliser Project in Brazil, further strengthening the Company's in-country sales and marketing team as it focuses on building its sales pipeline, and for general working capital purposes. 

KPfértil, an organic fertiliser and remineraliser, is produced by Harvest at Arapua, where there are indicated and inferred resources of more than 13 million tonnes of material.

A contract for 50,000 tonnes of KPfertil was also announced today to add to a 36,000 tonnes contract signed in March Agrocerrado at a sale price of US$53/t.

Brian McMaster, executive chairman of Harvest, said: "This £9.712 million placing is a significant achievement for the Company and a pivotal moment in its evolution. As a revenue generative producer with a large project located in the heart of the largest and fastest growing fertiliser market in Brazil and with a clear growth strategy, Harvest is a straightforward, yet compelling proposition; it is encouraging that institutional investors have recognised its potential.

He added: "The funds raised via this oversubscribed accelerated bookbuild will enable us to increase production at Arapua as incoming sales orders necessitate, strengthen our in-country sales team and enable us to capitalise on further opportunities."

 -- Adds details on placing completion; updates share price --

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