Former aspiring junior sulfate of potash producer Australian Potash Ltd. has completed a $2.98 million capital raise, issuing nearly 3 billion shares at $0.001 each, accompanied by billions of options.
The funds are reportedly allocated to various projects including drilling at the Lake Wells Gold Project, some 500 kilometers northeast of Kalgoorlie in Western Australia, and administrative costs, with the majority aimed at working capital and further exploration. The company plans to apply for the options to be quoted on the ASX.
Australian Potash went into voluntary administration last December (GM Dec. 8, 2023) and emerged in February (GM Feb. 2, p. 28) following creditor approval of a Deed of Company Arrangement (DOCA), which allowed the administrators to step down and Australian Potash to be returned to the directors as a solvent entity.
In the months prior to administration, Australian Potash had been turning its focus to critical minerals, which included its Nexus rare earth elements project in the West Arunta and the Lake Wells Gold Project. The company said it is these projects that it 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 it 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.