Former aspiring junior sulfate of potash producer Australian Potash Ltd. (APC) said it exited administration as of Feb. 1, following creditor approval of a Deed of Company Arrangement (DOCA) on Jan. 19.
The DOCA went into effect on Feb. 1, allowing the administrators to step down and APC to be returned to the directors as a solvent entity, APC said in a Feb. 2 ASX statement. The company’s balance sheet has been significantly restructured with all previous trade creditors and other payables agreeing to the settlement terms proposed in the DOCA. Most creditors will receive 100 Australian cents on the dollar.
“We successfully and quickly negotiated our way through the voluntary administration process, which now allows us to move forward with having APC’s shares requoted on the ASX,” said APC Managing Director and CEO Matt Shackleton.
Hayden White and Daniel Woodhouse of FTI Consulting were appointed as Voluntary Administrators of the Subiaco, Western Australia-based company on Dec. 6 last year (GM Dec. 8, 2023).
In the months prior to administration, APC had been turning its focus to critical minerals, which included its Nexus rare earth elements project in the West Arunta and its Lake Wells Gold Project, some 500 kilometers northeast of Kalgoorlie, both in Western Australia. It is these projects that APC will now focus on.
The company surrendered the mining leases for its Lake Wells SOP Project in August last year after it was unable to secure further funding (GM Aug. 18, 2023). The project, which was aiming at potential production of 150,000 mt/y of SOP (GM May 25, 2021), was put on ice in June (GM June 16, 2023).
APC retains the database for the development of Lakes Wells, as well as its interest in the exploration license tenure its holds for the project. The company reported in December that it was ready to deploy the project information and know-how should a new opportunity emerge for the project.
APC said it will shortly lodge a prospectus for the issue of shares to fund a planned exploration program and access work. The capital raising program has been managed by Canaccord Genuity and Cumulus Wealth, which will underwrite A$2.75 million of the targeted A$6 million (approximately $3.9 million at current exchange rates) maximum raise.