PERTH (miningweekly.com) – ASX-listed Salt Lake Potash will raise A$13-million through a share placement to institutional and sophisticated investors, to fund the development of its Lake Way project, in Western Australia.
The company on Friday said that some 31-million new shares will be placed at a price of 42c a share, representing a discount of 13.4% to Salt Lake’s last closing price of 48.5c a share.
The placement will be completed in two tranches, with the first 29.25-million shares to be placed under the company’s existing placement capacity, and the balance of 1.7-million shares subject to shareholder approval.
“We are very pleased to have received such strong support from new and existing shareholders to fund the construction of the initial on-lake infrastructure at Lake Way,” said Salt Lake CEO Tony Swiericzuk.
Proceeds from the placement will be used to construct the Williamson ponds and for dewatering of the Williamson pit, as well as the ongoing development of on-lake infrastructure, exploration and feasibility studies, and general working capital.
The Williamson pond will be the first operational scale sulphate of potash evaporation ponds built on a salt lake in Australia, and is an important part of the staged de-risking and development of the Lake Way project, as well as across the Goldfields Salt Lakes project.
“These activities are on the critical path to enabling Salt Lake to become the first Australian commercial producer of potash in a global sector with outstanding potential. This strong support from investors endorses our view that the Goldfields Salt Lakes project has enormous potential for value creation and we now look forward to rapidly delivering on this potential for all shareholders and stakeholders.”