PERTH (miningweekly.com) – Potash developer Kalium Lakes has raised A$48.8-million through the completion of a share placement and the institutional component of its entitlement offer, to fund the cost-overrun in the construction of its Beyondie sulphate of potash (SoP) project, in Western Australia.

The company last week announced plans for a A$61-million capital raise, consisting of a A$19-million institutional placement and a A$42-million fully underwritten five-for-seven entitlement offer.

The new shares were issued at a price of 15c each, representing a 69% discount to Kalium Lake’s last closing price on February 21, and a 53% discount to its theoretical ex-rights price.

The institutional placement consisted of 126.8-million shares, to raise A$19-million, while the entitlement offer consisted of a combined 279.9-million shares to raise A$42-million.

Chairperson Mal Randall on Monday said that the interest received from sophisticated and institutional investors to participate in the funding for the Beyondie SoP project was particularly strong and well oversubscribed.

“A good mix of new and existing investors participated in the offer and these investors continue to recognize the quality of the project, the long mine life, the low operating cost and the attractive financial metrics.”

The retail component of the entitlement offer, which is expected to raise a further A$12.2-million, will open on May 26 and close on June 9.

The funds raised will be used to complete the construction of the Beyondie project, and to provide sufficient working capital until first production.

The project is nearly 40% complete, with some A$100-million already spent on the project.

Kalium Lakes previously said that an additional A$61-million in capital requirements would be necessary to bring Beyondie into production, above the initially budgeted capital cost, on the back of project delays and the Covid-19 pandemic.

Once in production, the Beyondie project will produce 180 000 t/y SoP, with the option to incrementally phase the project through a ramp-up from 90 000 t/y to 180 000 t/y to minimise operational and financial risks.