BCI taps investors for $315m

Kerry Stokes-backed BCI Minerals is asking investors for $315 million to help fund the final component of its Mardie project near Karratha.

The West Perth-based mineral resources company told the market it planned to raise $255 million via an accelerated non-renounceble pro-rata entitlement offer to exisiting shareholders, priced at 25 cents per share.

Additionally, BCI said it would raise an additional $60 million by way of a new share placement across two tranches to sophisticated investors, also at 25 cents per share.

Mr Stokes' company Wroxby, BCI's largest shareholder, has already signalled its intent to take up its full entitlement offer, which is approximately worth $100 million. 

BCI last traded at 27.5 cents per share, prior to a trading halt. 

Thursday's news follows BCI's announcement last November it had secured a syndicated facility agreement for its Mardie salt project, with nearly $1 billion locked in for the under-construction asset. 

In June last year, the company also undertook a major review of its project, due to costs rising from $1 billion to $1.6 billion. It also signed an off-take deal with the Japan-based Itochu Corporation to supply salt from Mardie. 

Itochu has agreed to purchase a minimum of 3,600 kilotonnes of salt over five years from 2026. 

“This equity raising is intended to complete the total funding package required to enable the Mardie Project to deliver first salt in the second half of 2026," BCI managing director David Boshoff said.

"We do not anticipate any further equity raises being required to fund the development of the project and we are grateful for the strong support shown by our largest shareholders, including Wroxby and Australian Super." 

The Mardie salt and potash project is 100 per cent owned by Mardie Minerals, which is a wholly owned subsidiary of BCI.