American Pacific Borates raises $2.75 million in placement to three global institutional investors
American Pacific Borates Limited (ASX:ABR) has completed a placement of $2.75 million at 25 cents per share to three global institutional investors.
Funds raised will help pay for long-lead items for the Fort Cady Borate Project in southern California such as centrifuges, the crystalliser, Manheim furnaces and the natural gas connection.
ABR remains on track to begin initial civil works at the project by the end of the year.
The placement was completed at a 4.4% discount to the company's 10-day VWAP of 26.1 cents.
Placement details
It includes five unlisted options for every six ordinary shares with a strike price of 30 cents set to expire on December 6 2021, or 15 days after the companys shares have traded over 50 cents for 10 consecutive days.
There will be 11 million ordinary shares and 9,166,668 options issued under the companys existing ASX Listing Rule 7.1 capacity.
Furthermore, under the Amvest convertible note, the company must repay 23 equal monthly instalments with cash or the allotment of ordinary shares.
The board has determined it will repay these instalments via cash to limit further dilution in the short term.
The first cash repayment to Amvest was made on December 6, 2019, covering the second period to December 5, 2019.
Fort Cady details
Fort Cady is a highly rare and large colemanite deposit and is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.
It contains measured, indicated and inferred resources of 13.93 million tonnes of contained boric acid.
A definitive feasibility study (DFS) completed in DeceRead More – Source
