Australian Potash Ltd (ASX:APC) is seeking to raise up to $7.68 million through a pro-rata non-renounceable entitlement offer to existing eligible shareholders.
Under the offer, the company will issue one new fully paid ordinary share for every four shares held by eligible shareholders at an issue price of $0.038 per share.
In addition, APC will also issue one free attaching option for every two new shares subscribed under this offer at an exercise price of $0.060 and an expiry date that is 12 months from the date of issue.
Offer summary
Shaw and Partners Limited and Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited have been appointed joint lead managers of the offer.
The issue price for the offer represents a 20.8% discount on the closing price of the company’s shares on July 26, 2022.
Up to about 202 million shares and 101 million options will be issued under the offer.
About the company
Australian Potash holds a 100% interest in the Lake Wells Sulphate of Potash (LSOP), about 500 kilometres northeast of Kalgoorlie, in Western Australia's Eastern Goldfields.
The company is finalising predevelopment plans for the commencement of construction.
First production from the LSOP is scheduled for 24 to 27 months from a final investment decision.
The company also holds a 100% interest in Laverton Downs Project and a 30% free-carried interest in Lake Wells Gold Project.