Asia Pacific finances project

Asia Pacific Resources (APQ-T) will finance development of its Somboon potash property in northeastern Thailand by arranging a $6.2-million private placement.

The placement will consist of 2.4 million units priced at $2.60 each. A unit will consist of one share and half a warrant. One whole warrant will entitle the holder to buy an additional share at $3.10 in the first year, or at $3.60 in the second.

The private placement was arranged with Rothschild Australia Golden Arrow Investors, which will buy 2 million units, and a German investment fund, which will buy 400,000.

The Thai government retains a 10% carried interest in the potash project.

In May, Norsk Hydro (NHY-N), one of the world’s largest producers of fertilizers, signed an agreement with Asia Pacific to acquire a 20% interest in Somboon. Asia Pacific has since been in discussions with a third party to secure a further 20% participation in the project.