PERTH (miningweekly.com) – Potash hopeful Elemental Minerals has completed a A$4.98-million private placement to fund feasibility studies for its projects in the Republic of Congo.

Elemental said on Friday that existing shareholders took part in the placement, which had been priced at 20c a share.

“We are extremely pleased with the continued support expressed by shareholders through this successful private placement, which reflects their recognition of the exceptional quality of the projects,” said Elemental CEO John Sanders.

The funding would allow Elemental to undertake a bankable feasibility study at its Kola project and a prefeasibility study (PFS) at its Dougou potash projects. Sanders said that by advancing both projects, Elemental created strategic optionality and an emerging potash province which would include the Kola, Dougou and Yangla projects, all lying within 20 km of each other, and with only 25% of the property explored to date.

“Our discussions with companies capable of major funding and offtake are advancing, supported by the successful reduction of the initial capital requirements for the shallow and high-grade Kola sylvinite deposit, the company’s flagship asset,” Sanders said.

In October last year, Elemental halved the capital investment expectations for the Kola project from $1.85-billion to $908-million, as a phased development was considered.

Phase 1 of the project would see the mine operate at a one-million-tonne-a-year rate, for a period of four years, with the Phase 2 operations increasing the output to two-million tonnes a year.

“There is increasing recognition of the high quality of our potash projects and the opportunity they present to achieve the lowest global potash production operating cost and it is looking increasingly likely that a strategic investment and offtake agreement will be secured in the near future.”

Sanders said that this would provide a runway to production and the build-finance for this production.

“We are ready to start the Kola bankable feasibility study, which is a significant step in taking this deposit to production. The Dougou deposit is one step back in the development timeline, but forms an integral part of our planned production from this emerging potash province, and will be taken through prefeasibility, adding further value for shareholders.”

The Kola studies would likely be completed by the third quarter of 2016, with construction expected to start in the second quarter of 2017, while the Dougou PFS was scheduled for completion in the second quarter of 2016.