viewAmerican Pacific Borates Ltd

American Pacific Borate & Lithium raises over $4 million to fund Fort Cady Borate Project

The funding will be used to advance construction following completion of the DFS.

Fort Cady has one of the world's largest known borate mineral resources

American Pacific Borate & Lithium Ltd (ASX:ABR) has completed an oversubscribed placement of $4 million at 20 cents per share to institutional and sophisticated investors.

The placement price was at a discount of 12.5% to the last sale price and 17.5% to the 10-day volume weighted average price.

Funds will enable construction-related workstreams to progress quickly once a definitive feasibility study (DFS) for its Fort Cady Borate Project in Southern California is complete.

The study is due in October 2018 and the company believes this will be a transformational event as it evolves to the development stage.

“Borate market growing at 6% per annum”

American Pacific managing director and CEO Michael Schlumpberger said the placement would ensure the company could quickly move the Fort Cady project from studies to construction-ready activities following completion of the DFS.

He said: “We have a very unique project that combines low capex, high margin, low technical risk and an EBITDA profile of more than US$150 million per annum in full production into a borate market growing at 6% per annum, with limited visible supply.

“With borates non-substitutable in new world applications like electric vehicles, wind turbines, space shuttles and agriculture, we can only see our project becoming more valuable as the reality of a tight ongoing market with one dominant supplier continues.”

READ: American Pacific Borate & Lithium adds acreage to exploration projects in Nevada

American Pacific management has committed an additional $200,000 worth of shares at the placement price subject to shareholder approval.

Following completion of the placement, the company will have more than $6 million cash on hand with no debt.

Fort Cady is the largest known contained borate mineral resource estimate in the world not owned by major borate producers Rio Tinto (ASX:RIO) and Eti Maden.

Quick facts: American Pacific Borates Ltd

Price: 1.97 AUD

Market: ASX
Market Cap: $741.21 m

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