Free Eyre Announces Capital Raising program for Port Spencer

Free Eyre announces $16m capital raising program

27 Nov 2019, 6:32 p.m.Free Eyre chief executive officer Mark Rodda at Port Spencer, where the new port will be built.

FREE Eyre Limited has announced it will be releasing up to eight million $2 ordinary shares to fund Round B of development in its Peninsula Ports project. 

Free Eyre chief executive officer Mark Rodda said capital raising was aimed at Eyre Peninsula farmers, agribusinesses and other investors. 

“EP farmers, and in fact the community, need this new deep-sea port,” he said. 

“Free Eyre was set up by EP growers 10 years ago to identify opportunities to increase competition and add value to their agribusiness supply chains and markets. 

“The company has been working on the model for a grain-only port for several years, having explored all other proposals on the EP, and with extensive industry expert input, decided that Port Spencer would provide the optimal business model for a new port.

“EP graingrowers will benefit significantly through supply-chain savings brought about by delivering grain directly to the export port (no double handling), the introduction of state-of-the-art receival and storage technology and transport savings due to the strategic location of the new port.”

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The Port Spencer project is expected to cost between $180m and $220m to build, and hopes to attract up to 1m tonnes of grain throughput a year from the 2.5mt produced on the EP.

The break-even throughput is about 350,000t.

Construction is expected to commence in March and completed for wet testing in July 2021.

The share offer closes December 20.