Plymouth up on potash acquisitions

Shares in local rare earths explorer Plymouth Minerals closed 75 per cent higher on news it had entered into an agreement to acquire two African potash projects for an all-scrip deal worth up to $2.75 million.

Adrian Byass-led Plymouth will acquire the Banio and Mamana potash projects through the acquisition of Equatorial Potash and its wholly owned subsidiary Mayumba Potasse, in exchange for 25 million ordinary shares and 25 million performance shares, which are subject to the achievement of certain milestones.

The news sent Plymouth shares surging, to close at 7 cents each.

Plymouth has also received a firm commitment for a placement of up to 8.3 million shares at 4 cents each to raise about $332,066 to fund the acquisition, and for general working capital.

“The projects are located in the western quadrant of Gabon, an area of subdued relief and hosted within the extensive sedimentary Congo Basin and Gabon Basin,” the company said in a statement.

As part of the acquisition, Equatorial shareholders Eric Lilford and Christian Cordier will join the Plymouth board, replacing several existing (as-yet unnamed) board members.

The two projects cover a combined 1,400 square kilometre area, and have been historically drilled to report high-grade potash at shallow depths.