JOHANNESBURG (miningweekly.com) – A recent bookbuild by ASX-listed potash developer Kalium Lakes was oversubscribed and strongly supported by existing and new shareholders, raising A$14.2-million from 33.5-million shares.
The company now expects to be fully funded to complete the bankable feasibility study (BFS) at its Beyondie sulphate of potash (SoP) project in Western Australia, start early site preparation works and to provide working capital for project.
Kalium MD Brett Hazelden said on Friday that the oversubscribed placement represented a strong endorsement of the first prefeasibility study and reserve completed by an Australian SoP company and the commitment Kalium Lakes has demonstrated since listing 11 months ago.
“We continue to gain momentum and accumulate the support of investors and brokers who appreciate and understand the level of detail we are able to provide on every aspect of the Beyondie project.
“The company looks forward to completing the works and project financing during the course of next year,” he added.
In addition to the placement, Kalium Lakes is also offering eligible shareholders the opportunity to participate in a share purchase plan to raise A$2-million.
The company noted that it was no actively pursuing off-take memorandums of understanding, particularly following discussions with interested parties at the 2017 International Fertiliser Association Conference in Shanghai.
Kalium Lakes is set to move rapidly through the next development phases of the project and deliver its near-term goal of becoming the first Australian SOP producer.
“The current pilot scale activities are providing vital information that will be incorporated into the BFS and we will also be able to expand those activities for the full-scale development requirements,” said Hazelden.