EDITOR: | July 24th, 2013

Potash Minerals Limited: Placement to Raise $1.7 Million and Share Purchase Plan

| July 24, 2013 | No Comments
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July 24, 2013 (Source: Potash Minerals) — Highlights

  • Placement to raise $1.7 million before costs
  • Current shareholder participation via Share Purchase Plan
  • Entitlements issue of options to follow Share Purchase Plan

Potash Minerals Limited is pleased to announce a placement to raise approximately $1.7 million before costs (Placement) and Share Purchase Plan (SPP) to principally fund the commencement of study works towards Pre-Feasibility at the Hatch Point Potash Project in Utah, USA and for working capital.

Placement

The Placement is being undertaken predominately to sophisticated investor clients of Phillip Capital Limited (Phillip Capital).

The Placement will be undertaken within the Company’s existing 15% placement capacity under ASX Listing Rule 7 .1, as well as the 10% placement capacity available under ASX Listing Rule 7.1A, which was approved at the Company’s Annual General Meeting held on 20 November 2012.

Terms

  • Under the placement the Company will issue up to 14,229,513 ordinary shares at $0.12 each.
    • 6,662,708 shares will be issued in accordance with ASX Listing Rule 7.1; and
    • 7,566,805 shares will be issued in accordance with ASX Listing Rule 7.1A.
  • Shares will be placed with institutional and sophisticated investor clients of Phillip Capital; and
  • The Company has agreed to pay a capital raising fee of 5% and a management fee of 1% of funds raised pursuant to the Placement to Phillip Capital, who acted as Lead Broker for the Placement.

Settlement

Settlement of the Placement is expected to occur by Monday 29 July 2013. The Company will provide the additional information required by ASX Listing Ru le 3.10.5A upon settlement.

SPP 

The Board is pleased to provide eligible existing shareholders the opportunity to participate in the capital ra ising by undertaking a SPP to raise up to an additional $2,836,657. Subject to receipt of an ASX waiver, the issue price under the SPP will be the same as the Placement price. In the event that the ASX waiver is not granted, the SPP will proceed, however the SPP price will be determined by reference to the ASX formula set out in the ASX Listing Rules, as opposed to being set at the Placement price.

Participation in the SPP will be optional and is open to eligible shareholders who at 5.00pm AWST on 23 Ju ly 2013 are registered holders of ordinary shares in Potash Minerals and whose registered addresses are in Australia or New Zealand. Following the determination made by ASX in relation to the Waiver, the Company will announce further details of the SPP, including the key dates. The SPP documentation will also be distributed to shareholders in due course, fol lowing a decision by ASX in relation to the ASX waiver.

Entitlements Issue of Options 

Following the completion of the SPP, Potash Minerals will provide el igible shareholders as at the record date to be calculated when the offer is finalised (Record Date), with an opportunity to participate in an entitlement issue of options to acquire fully paid shares in the Company (Options). The Options will be exercisable at 20 cents each over a two year period and will be offered at a subscription price of nil on a 1 for 2 basis according to shareholding on the Record Date. Further details regarding the Loyalty Options offer will be contained in the offer document to be sent to eligible shareholders following the completion of the SPP.

About the Hatch Point Potash Project 

Potash Minerals Limited has earned 90% of the Hatch Point Potash Project ( “the Project”) which covers 405 km2 in the Paradox Basin in south eastern Utah. The BLM has approved the assignment of al l the 405 km2 of permit applications to K20 Utah. The BLM has also ru led that all of K20 lands are now designated a Non Known Potash Leasing Area and therefore will not be subject to competitive bidding. The Hatch Point Potash Project is located close to key agricultural regions of the United States and as such is especially well situated to supply fertilizer manufacturers and agricultural cooperatives in the western United States. The Project also has substantial export potential given its excellent proximity to key US rail infrastructure leading to West Coast and Gulf ports.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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