logo-loader
viewAustralian Potash Ltd

Australian Potash secures $1.6 million to fund pre-development activities at Lake Wells

The company’s DFS has confirmed that the Lake Wells Sulphate of Potash Project (LSOP) will be a long life, low capital and high margin SOP producer.

Australian Potash Ltd - Australian Potash secures $1.6 million to fund pre-development activities at Lake Wells
Project underpinned by 3.6 million tonne reserve and 18.1 million tonne measured resource

Australian Potash Ltd (ASX:APC) has completed a bookbuild for a placement to sophisticated and professional investors to raise $1.6 million through a placement of shares at 7 cents each.

The company will use the proceeds from the placement to fund ongoing pre-development activities at its 100% owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia.

The funds will be applied towards finalising the LSOP permitting and approvals process and progressing FEED and optimisation activities.

Notably, APC non-executive chairman Jim Walker participated in the placement by subscribing for 857,142 new shares worth $60,000, subject to shareholder approval.

Long life, high margin SOP producer

Following the release of the Definitive Feasibility Study (DFS) in August 2019, APC is focused on the 6-month FEED Study, finalising offtake discussions and securing financing to develop the LSOP.

The DFS confirmed that the LSOP will be a long life, low capital and high margin SOP producer.

Key outcomes from the DFS include:

  • 30-year mine life producing 150,000 tonnes per annum of premium grade SOP;
  • Long mine life underpinned by 3.6 million tonne reserve and 18.1 million tonne measured resource; estimate;
  • Pre-tax net present value (NPV) of $665 million and an internal rate of return (IRR) of 25%;
  • Development capex of $208 million with sector leading capital intensity of $1,387 per tonne; and
  • First quartile industry opex of US$262 per tonne providing high cash operating margins.

Quick facts: Australian Potash Ltd

Price: 0.061 AUD

ASX:APC
Market: ASX
Market Cap: $24.47 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Australian Potash Ltd named herein, including the promotion by the Company of Australian Potash Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Australian Potash announces DFS findings for Lake Wells Sulphate of Potash...

Australian Potash Limited (ASX:APC) chief executive officer and managing director Matt Shackleton updates Proactive Investors on the findings of a DFS for the development of its 100%-owned Lake Wells Sulphate of Potash Project in WA. “Our premium high-grade Sulphate of Potash project will be...

on 28/8/19

2 min read