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Tata Chemicals is raising its stake in potash miner EPM Mining Ventures Inc., Canada, from 15.9 per cent to 30.6 per cent.
According to the latest deal, a subsidiary of Tata Chemicals will subscribe to eight million fresh shares and eight million share warrants, convertible into as many shares of EPM, for a little over $16 million.
The warrants are convertible into shares within 12 months of the share issue at a price of $2 per share, which should entail a further $16 million in investment.
The closing of the offering is subject to certain customary closing conditions set out in the subscription agreement, including the approval of the TSX Venture Exchange.
EPM intends to use the proceeds of the offering for the further evaluation of its properties and for general working capital purposes.
Simultaneously, Tata Chemicals has also struck a deal with the founding shareholders of EPM, Lance D'Ambrosio and Jeff Gentry, to acquire around 4.37 million shares at the same price of $2 per unit.
Post-acquisition of shares, subscription to fresh shares and conversion of warrants into equity, Tata Chemicals will own around 30.6 per cent.
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