BCI Minerals Limited has entered into agreements with Wroxby Pty Limited and AustralianSuper Pty Limited, under which the two entities will issue $30 million each to raise a total of $60 million in convertible notes to fund BCI’s Mardie Project.
BCI said the funds would provide it with working capital to award critical path contracts while the reviews for the Mardie Salt and Potash Project are being completed.
The raising includes an initial conversion price of $0.43, in line with BCI’s 2021 share issue price, and an 87 per cent premium to BCI’s closing share price on 27 April.
The conversion price is subject to customary adjustments and adjustments on the occurrence of a qualifying offer.
The issue of notes is subject to shareholder approval, which will be sought at a general meeting expected to be held in June.
The notes will have a maturity date of 29 February 2024 and an initial interest rate of 10 per cent per annum, increasing to 13 per cent annually from 31 July 2023.
Commenting on the move, BCI Managing Director David Boshoff said the funds would enable the Mardie Salt and Potash Project to progress with the critical path construction activities, adding value to the company’s strategic goals.
“BCI is grateful for the continued support from Wroxby and AustralianSuper, both of which are significant supporters and stakeholders of BCI,” he added.
Boshoff noted that discussions are also ongoing to determine other prospective funding providers, in parallel with the finalisation of the cost and design review and base case financial mode.
