Emerging sulphate of potash play Trigg Mining (ASX: TMG) is adding to its raising limit after its $3.2 million rights issue was “significantly” over-subscribed.
The company will now proceed with a “top-up” placement of $250,000 to accommodate some of the excess demand for the new shares.
That will take the number of new shares to 34.5 million, with the offer being set at $0.10 per new share, along with attaching options exercisable at $0.20.
Trigg says it is now well-funded to complete an indicated mineral resource estimate and scoping study at its Lake Throssell project in Western Australia.
Managing director Keren Paterson said she is delighted with the success of the raising.
“The proceeds ensure we can accelerate our strategy to unlock the value of Lake Throssell,” she said.
Lake Throssell has the potential to be a significant new long-term SOP production hub in WA — providing the foundations for a sustainable, long-term business that is highly geared to one of the world’s fastest growing markets.”
Trigg looks to help Australian agriculture
Trigg, which had a market capitalisation of around $8.8 million before the raising, has been the minnow of West Australian SOP hopefuls. This is despite of its 20 million tonne contained resource across its two projects.
As of this week, Salt Lake Potash (ASX: SO4) is worth $301 million, Kalium Lakes (ASX: KLL) $214 million, Agrimin (ASX: AMN) $103 million, Australian Potash (ASX: APC) $81 million, and the veteran SOP play Reward Minerals (ASX: RWD) being capitalised at $23 million.
Trigg’s Lake Throssell project is located 170 km east of Laverton on the Great Central road connecting Laverton to Alice Springs.
The company has stated previously that it is looking to secure Australia’s sustainable agriculture future through the exploration of essential the essential potassium fertiliser necessary for global food production and human nutrition.
SOP provides essential macro nutrients for plant growth without any detrimental elements, such as chloride found in muriate of potash.
In addition, SOP can be produced sustainably through the solar evaporation of potassium-rich hypersaline brine water, without the need for large open pits or waste-rock dumps.
More resources at Lake Rason
While the recent news out of Trigg has focused on the successful exploration at Lake Throssell, the company also has the Lake Rason SOP Project that covers 500sq km of granted and pending tenements.
This second project already has an inferred mineral resource of 5.9Mt.
Trigg holds more than 3,500sq km of strategic tenure located close to energy and transport infrastructure.
It says it has an inventory of more than 20Mt of SOP “with prospectivity to expand further”.