(MENAFN - ProactiveInvestors - Australia) Potash West (ASX:PWN) has secured a Chinese cornerstone investor to invest A3 million through a share placement.
The funding will cover a substantial portion of the pre-feasibility study costs for the Dandaragan Trough project in Western Australia.
The project aims to develop the large glauconite deposits present in the Trough, starting less than 60 kilometres north of Perth.
The placement of over 9.9 million shares will be done at a 33 cents a share, a 35% premium to the five-day trading average.
Potash West will produce potash fertiliser and a range of by-products including superphosphate.
It is in the process of exploration to identify the thickest, shallowest and highest grade deposits while developing a flow sheet for a cost effective process development.
A final flow sheet has been defined, with a scoping study to identify capital and operating costs estimates currently underway. It is being conduced by Tenova Bateman Projects, with work likely to be completed by end of this year.