Elemental to raise $19m for African potash

Elemental Minerals has raised $14 million and has announced plans to secure a further $5 million to advance studies and exploration at its Sintoukola Potash Project in the Republic of Congo.

The company announced today it had received firm commitments from sophisticated and institutional investors for a $14 million placement, brokered by BMO Capital Markets, Renaissance Securities and National Bank Financial.

Elemental said it would seek to raise a further $5 million through a share purchase plan for existing shareholders.

Both the placement and purchase plan were priced at 38.5 cents per share.

“Elemental is pleased with the very strong support for the capital raising,” chief executive Iain Macpherson said.

"The additional working capital will strengthen the company’s balance sheet and enable it to continue to advance the development of our project while continuing to assess alternatives open to us."

At close of trade today, Elemental’s shares on the ASX were up 9 per cent, trading at 42 cents.