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BCI armed with $1.2bn to launch Mardie


BCI Minerals is poised to commence development at its Mardie salt and potash project in the Pilbara region of Western Australia after achieving the funding required to support the operation.

The company announced a $360 million capital raise this week to round out the project’s initial financing.

This will see existing shareholder Wroxby ($110 million) and new shareholder AustralianSuper ($75 million) contribute to a placement of $240 million at $0.43 per share.

Other current shareholders Ryder Capital ($28.5 million) and Sandon Capital ($3.5 million) are also supporting this placement, which has been underwritten by Canaccord Genuity.

A $20 million share purchase plan is also involved, underwritten by Canaccord and sub-underwritten by AustralianSuper.

On BCI’s own election, up to $100 million in consolidated notes may be issued to AustralianSuper during 2022, each of which can be exercised at $0.6235.

BCI will also purchase AustralianSuper’s stake in Agrimin and Highfield Resources as part of the transaction.

The company also has access to an additional $100 million in available cash reserves, a proposed corporate debt facility, and royalties from its Iron Valley iron ore mine in central Pilbara.

It comes after BCI announced a $740 million debt funding package for Mardie in October, with support coming from various financiers and banks.

All of the aforementioned subsidies considered, BCI has $1.2 billion at its disposal for the construction and ramp up of Mardie.

“Achieving the full $1.2 billion Mardie funding solution is a major milestone in BCI’s history. The strong support from existing shareholders and new investors underscores the merits of the Mardie salt and potash project as a long-term, sustainable and integrated opportunity,” BCI chairman Brian O’Donnell said.

BCI managing director Alwyn Vorster said support from new and loyal shareholders had been principal in kickstarting Mardie.

“BCI acknowledges the ongoing strong support from Wroxby, Ryder and Sandon who have backed the company over a long period of time, allowing this milestone to be reached,” he said.

“BCI is also pleased to welcome AustralianSuper, the largest superannuation fund in Australia, as a cornerstone supporter of our capital raising. Mardie will turn an inexhaustible seawater resource into high-quality salt and potash needed to produce thousands of products sustaining everyday life.”

The Mardie salt and potash project has the potential to produce 5.35 million tonnes per annum of salt and 140,000 tonnes per annum of sulphate of potash (SOP).

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