Elemental raises cash for Congo potash project
PERTH (miningweekly.com) – Junior potash explorer Elemental Minerals has raised about A$3.1-million through a share placement to sophisticated and institutional investors.
ASX- and TSX-listed Elemental priced the share placement at 25c a share, which was an 11% premium to the closing price of Elemental shares on May 16.
“The successful raise, at a premium to the market price, is particularly pleasing given the tough market conditions experienced by junior miners,” said CEO Iain Macpherson.
Elemental would use the funds to supplement its treasury and to advance its Kola project and Dougou prospect, both of which form part of the larger Sintoukola project, in the Republic of Congo.
“The quality and strategic nature of the Sintoukola project has ensured that we were able to secure this funding, which coupled with the recent transaction through with Harlequin, once of the company’s founding shareholders, acquired Pala’s stake in full at a very significant premium of A$0.3407 a share, puts the company firmly on course to execute on its recently announced new development strategy and conclude negotiations with a strategic partner that will enable future development of the project,” said Macpherson.
The Sintoukola project has the potential to be among the world’s lowest cost potash producers.
A prefeasibility study has shown that the project could deliver about two-million tons a year of muriate of potash. The underground operation was expected to have a mine life of 23 years. The project could be developed at a total capital cost of $1.85-billion, and would have a net present value of $2.9-billion, and an internal rate of return of 29.3%.
Elemental was targeting initial potash production by 2017 and to reach full capacity in 2018.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
