Australian Potash, which owns the Lake Wells sulphate of potash development in Western Australia, has exited administration, with its directors fully back in control of the company.
Australian Potash entered voluntary administration in December.
“We successfully and quickly negotiated our way through the voluntary administration process, which now allows us to move forward with having APC’s shares requoted on the ASX,” said MD and CEO Matt Shackleton.
The company’s balance sheet has been significantly restructured with all previous trade creditors and other payables agreeing to the settlement terms proposed in the deed of company arrangement.
Most creditors will receive 100c in the dollar.
Australian Potash said it had identified walk-up drill targets to work on. The company would also push forward with the requisite access and heritage agreements at the Nexus rare earth element project in the West Arunta.
Further, it will shortly lodge a prospectus for the issue of shares to fund the planned exploration programme, and heritage and access work. The capital raising process has been managed by Canaccord Genuity and Cumulus Wealth, which will underwrite A$2.75-million of the targeted A$6-million maximum raise.
Australian Potash has appointed Jonathan Fisher to its board, while Natalia Streltsova and Rhett Brans have resigned their directorships.