The company sought to raise $1.5 million, but strong demand allowed $1.8 million to be raised before costs.
The placement was completed at $0.04 per share plus ½ a $0.07 option.
Pat McManus, managing director, commented:
"We are very pleased with the support received for this capital raising, particularly in what are challenging times for the junior resource sector.
"We will now look to accelerate the progress on our Dinner Hill phosphate project in the Dandaragan Trough north of Perth, Western Australia."
Dinner Hill upgrade
Recently Potash West upgraded the size and grade of the company's resource at its Dinner Hill Project, which highlighted its world-class size.
The phosphate indicated resource grew to 250 million tonnes at 2.9% P2O5, a 108% tonnage and 4% grade increase.
The potash mineralisation occurs mainly within the Molecap Greensand, which is now estimated to contain 175 million tonnes at 4% K2O, a 43% increase in tonnes and a 12% grade reduction.
The two resources, phosphate and potash are, in the main, contained in the same area and could be recovered by a single mining operation.
The current resource could be just the beginning, considering mineralisation is open to the east and to the south.
Attractions of Dinner Hill
The project is also close to local markets in Western Australia while its proximity to export ports places it within reach of markets in South East Asia.
Other attractions include:
- Low capex, low risk route to cashflow through phosphate production first. Low impact mining.
- Great infrastructure already in place, while being less than 200 kilometres by existing rail to export ports.
- High operating margin potash, phosphate and alumproject as stage 2.
- The scale is large enough to be a significant fertilizer producer for many decades.
Potash West has raised $1.8 million in an oversubscribed placement, which is a strong achievement in the current difficult capital markets.
Funds will be used to advance Dinner Hill, which has a low capex, low risk route to cashflow through phosphate production, and can leverage off existing infrastructure.
- Optimised mining plan to be completed within the next two months; and
- Start of Feasibility Study in the third quarter.
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