SYDNEY, AUSTRALIA: Lion Selection Group has agreed to purchase 14.0M PhosCo shares from the manager. This will increase Lion’s PhosCo holding from 14.8% to 19.9%.
Through this transaction, Lion Selection Group will increase its publicity to PhosCo, which in Lion’s view has a deep worth creation proposition round its Tunisian rock phosphate assets, because the corporate derisks the Chaketma Phosphate project and appears to purchase an exploration allow over the Sekarna Phosphate project.
The pricing of the shares agreed between Lion Selection Group and the supervisor acknowledges Lion’s underlying worth at 64.7c (the Net Tangible Asset backing at 2December) and PhosCo’s recent share price at 13c.
Consequently, Lion will (subject to shareholder approval) issue shares at a 35% premium to Lion’s recent share price and purchase PhosCo shares on the market price.
The transaction will increase alignment between Lion Selection Group and the Manager by offering additional incentive to the Manager.
The Manager’s shareholding in PhosCo has arisen through participation in PhosCo fundraisings to support the corporate through difficult times, along with PhosCo directors’ charges paid to the Manager by way of PhosCo shares so as to preserve cash.
Lion stays focussed on prioritising funding in Australia and on the precious metals, base metals and battery supplies commodities. While Lion’s follow-on funding in PhosCo falls outside of those focus areas, Lion has been an investor in PhosCo since 2010, with the modest funding premised on achieving an influential level in an organization that Lion is aware of well in a commodity with beneficial fundamentals.
PhosCo’s outlook is thrilling with project assessments advancing with the possibility of defining a worldclass scale rock phosphate project. PhosCo has outlined a piece program that may obtain additional project evaluation and potentially create significant worth with comparatively low capital deployment.
PhosCo is capitalised at $36M, Lion’s resultant PhosCo shareholding will account for $7.1M / 4.7cps / 7.4% of Lion’s NTA. While this makes PhosCo one of Lion’s extra significant holdings, Lion’s remaining portfolio is largely money $35.3M and holdings that are anticipated to transform to money $46.0M throughout early 2023.
PhosCo Ltd (ASX:PHO) is an ASX-listed firm focussed on the event of a possible large-scale, world-class mining operation round its Chaketma Phosphate Project in Tunisia.
