Minerals explorer Potash West has secured $2.9 million as part of an oversubscribed 5 cent placement to fund development at its Dandaragan Trough projects near Perth and Kullestedt potash project in central Germany.
Potash initially sought to raise $2.5 million but received firm commitments for an additional $400,000.
The company will issue 58 million shares, subsequent to shareholder approval received on September 12, to raise $2 million plus the company’s available 15 per cent capacity.
Potash managing director Patrick McManus said he was pleased with the support, given the challenging times for the junior resource sector.
“We will now look to progress the permitting and resource reporting on our prospective German projects and to accelerate the progress on our major glauconite deposits in the Dandaragan Trough north of Perth,” he said.
Helmsec Global Capital was lead manager for the capital raising.
The cash injection follows an $800,000 placement the company completed in July at 3.5 cents per share.
The company recently entered into a joint venture agreement to acquire a 55 per cent interest in a potash exploration project in Germany.
Potash shares closed at 5 cents, down almost 14 per cent.