BCI Minerals intends to raise $48 million to accelerate the development of the Mardie salt and potash project in Western Australia’s Pilbara region.
Major BCI shareholder Wroxby, which holds 29 per cent in voting power, has committed to taking its full entitlement of $14 million.
This puts BCI closer to commencing early construction works at the Mardie project next year.
Construction at Mardie is targeted to begin in the second quarter of 2021, allowing for first salt sales by mid-2024 and first SOP sales by mid-2025.
BCI managing director Alwyn Vorster said the funds raised would be used to construct the trial pond, seawater pump station, major roads, accommodation village and initial power supply facilities, as well as ordering items such as pumps.
“Funds from the entitlement offer will enable BCI to commence early construction works and order long lead items which will result in an accelerated development schedule for the Mardie salt and potash project,” Vorster said.
“We are pleased with the level of support received from existing shareholders, providing further confidence for the larger funding task ahead for BCI in 2021.”
BCI’s other large shareholders, who hold a combined voting power of approximately 13 per cent, have also taken up their full entitlements, worth $6.2 million.
Once operational, the Mardie project will produce 4.4 million tonnes per annum of salt and 120,000 tonnes per annum of sulphate of potash (SOP) over a mine life of at least 60 years.
With its coastal location, including ready to access seawater and a port facility, BCI stated that the Mardie project was in an ideal position for export to markets in Asia.