Western Australia is set to see another salt and potash project in Mardie, with BCI Minerals (BCI) about to launch a fully underwritten $48 million entitlement offer to fund development of the project, including a seawater pump station.
Retail and institutional components will make up the one-for-two accelerated non-renounceable offer.
Key institutional investors have voiced their support of the offer.
The company’s major shareholder, Wroxby, which currently has a voting power of approximately 29 per cent, has committed to taking up its full pro rata entitlement of approximately $14 million.
Wroxby has also provided sub-underwriting for up to a further $19.3 million, being approximately 70 per cent of any shortfall of the entitlement offer.
Other large shareholders with a combined voting power of approximately 13 per cent have also committed to taking up their full pro rata entitlements, totalling $6.2 million, plus providing additional sub-underwriting commitments for the remaining 30 per cent potential shortfall.
Shares will be priced at 24 cents each, representing an eight per cent discount to the 15-day volume-weighted average price of 26.1 cents.
The retail component of the offer will open on Friday 18 September.
The Mardie project’s feasibility study was completed in July, giving the project a greenlight to move forward.
Early construction works will be funded by the entitlement offer which includes the trial pond, seawater pump station, major roads, accommodation, some power supply facilities, and for the ordering of long lead time items, like pumps.
The final construction phase at Mardie is slated to go ahead in the second quarter of 2021, pending the board’s final investment decision and the additional funding required.