Potash West has received $3 million from Chinese backers to help fund a feasibility study for its Dandaragan Trough potash project in Western Australia.
The company announced today it had reached agreement with an unnamed Chinese investment group for a placement of just over 9 million shares, priced at 33 cents each.
Managing director Patrick McManus said the investment was a significant boost for the project.
“We welcome the support of a strong Chinese investment group in our world class Dandaragan Trough assets and the significant processing technology breakthroughs we have achieved to date,” Mr McManus said in a statement.
Potash West is seeking to produce potash fertiliser and a range of by-products through the exploitation of glauconite deposits present in the Dandaragan trough, in the Mid West.
A scoping study is now underway, while a bankable feasibility study is expected to be complete by December next year.
At 11:45AM, WST, Potash West shares were up 10.4 per cent, trading at 26.5 cents.