News: Global Resources Corporation places shares for Pilbara potash play

Global Resources Corporation (ASX:GRM) has placed 11,833,334 shares to Sophisticated and Professional investors at $0.06 to raise $710,000 to assist progression of its potash interests in the Pilbara region of Western Australia.

GRM will, subject to shareholder approval, place a further 4,833,336 ordinary shares at an issue price of $0.06, to company directors.

Recent exploration carried out in adjoining tenements has highlighted the region’s potential to emerge as a major potash province, particularly prospective for the higher-priced sulphate of potash.

The projects are located in a very hot and dry environment, which is ideal for the low cost solar evaporation method of potash extraction.

In addition, the area is situated close to sealed roads and other established infrastructure, which service the nearby Telfer Mine.

Sulphate of potash supply is highly concentrated with existing suppliers, and supply is struggling to meet current demand.

Accordingly, Global expects that sulphate of potash resources in Western Australia will become increasingly strategic.

The company is capitalised at around $4.5 million.