Australian Potash has accelerated the development of its Western Australian assets, with the Lake Wells sulphate of potash (SOP) project flying towards its next stage.
A $10 million placement of shares will go towards early works for the Lake Wells village and the drilling of paleochannel production wells, 500 kilometres northeast of Kalgoorlie.
Additionally, the Laverton Downs nickel sulphide target will see the beginning of its first diamond drill hole program, between Lake Wells and Kalgoorlie.
Australia Potash managing director and chief executive officer Matt Shackleton said the fundraising demonstrated how well invested people are in Lake Wells.
“The heavy institutional and sophisticated investor demand for the offer reflects well on the Lake Wells SOP project’s very robust financial metrics and supports our transition into development,” Shackleton said.
“The Lake Wells SOP project still carries the largest 100 per cent measured JORC-compliant SOP resource across the space, which speaks to the technically de-risked nature of the development.”
Laverton Downs neighbours world-class mines including Gold Fields’ Granny Smith mine, AngloGold Ashanti’s Sunrise Dam mine and Dacian Gold’s 390,000-ounce Mount Morgans mine.
Shackleton said the company hopes to discover the next large deposit in the region.
“In addition to the Lake Wells SOP project, we look forward to unlocking the inherent value in the Laverton Downs nickel sulphide targets with a maiden diamond program scheduled to commence in May,” Shackleton said.
Australian Potash’s largest shareholder, Yandal Investments, has promised to subscribe for $800,000 of new shares in the $10 million placement.
The placement will be issued in two tranches – one around the end of May 2021, and a date for the second will be decided in early July at a general meeting.