Agrimin taps investors for $13m

Potash explorer Agrimin has announced plans to raise up to $13.2 million from investors to fund ongoing work at its Mackay project in Western Australia.

Perth-based Agrimin has raised $7 million from investors through the placement of 16.6 million shares at 42 cents each, and plans to raise a further $6.2 million by way of a one-for-nine entitlement offer priced at 40 cents each.

AustralianSuper has emerged as a cornerstone investor in the raising.

Half of the entitlement offer has been underwritten.

The proceeds of the raising will be used to fund ongoing work at the company’s wholly-owned Mackay sulphate of potash project through to completion of a definitive feasibility study.

A pre-feasibility study is on track for completion in October.

“Without pre-empting the outcomes of our ongoing PFS, the board has made the decision to undertake a capital raising of this manner and at this time given the positive results for the project at all levels,” Agrimin chief executive Mark Savich said.

Agrimin shares were 3.3 per cent lower to 58 cents each at the close of trade.