Elemental Minerals (ASX: ELM, TSX: ELM) has entered into a placement agreement with BMO Capital Markets, Renaissance Securities (Cyprus) Limited and National Bank Financial Inc for an offering of up to A$14 million in shares priced at A$0.385.
The placement is on a combined non-underwritten brokered basis. Orders have been received from investors to fully allocate the offering and the placement will utilise the company's available 15% placement capacity to issue the new shares without shareholder approval.
Elemental's largest shareholder Pala Investments Limited has shown its support and will participate in the placement.
Settlement of the placement is scheduled to take place on 28 November 2012 and remains conditional upon receipt of completed subscription letters, customary conditions, and conditional listing approval from the Toronto Stock Exchange.
The funds will be used to advance the company's 93%-owned Sintoukola Potash Project on the Republic of Congo coastline.
The potential of Elemental has been highlighted by the broader broker community, with Dundee Securities placing a 12-month share price target of C$1.30 (A$1.25) on the stock earlier in the month, which is over three times the last traded price.
Canadian investment bank Northern Securities is even more bullish on the stock, and placed a $2.70 price target on Elemental less than two months ago.
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