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

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