Elemental Minerals (ASX: ELM, TSX: ELM) has now received private placement commitments from sophisticated and institutional investors to raise around A$14 million, with the company also launching a share purchase plan for a further A$5 million.
The placement and share purchase plan are priced at A$0.385, with the company's largest shareholder, Pala Investments Limited, participating in the placement.
The funds will be used to advance the company's 93%-owned Sintoukola Potash Project on the Republic of Congo coastline.
Iain Macpherson, chief executive officer, commented: "Elemental is pleased with the very strong support for the capital raising.
"The additional working capital will strengthen the company's balance sheet and enable it to continue to advance the development of our project while continuing to assess alternatives open to us."
Settlement of the placement is scheduled to take place on 28 November 2012 with quotation of those shares on the ASX anticipated to occur on or about 29 November 2012.
Settlement and completion of the placement is conditional upon, amongst other customary conditions, conditional listing approval from the Toronto Stock Exchange.
Share Purchase Plan
The share purchase plan will allow shareholders to subscribe for up to A$15,000 each worth of new Elemental shares at the same price as the placement, A$0.385.
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