PERTH (miningweekly.com) – Potash developer Salt Lake Potash on Friday announced that it had received binding commitments from institutional shareholders and investors to raise up to A$52-million in a share placement.

The company would place up to 130-million new shares, at a price of 40c each, to raise the funds.

The shares will be placed in two tranches, with the first consisting of more than 66.5-million to be placed under the company’s existing capacity. The second tranche of more than five-million shares will be subject to shareholder approval, with an annual general meeting scheduled for late January.

Salt Lake in August this year executed a $138-million syndicated facility agreement with Taurus Mining Finance and the Clean Energy Finance Corporation (CEFC), and announced plans for a fully underwritten equity placement and non-renounceable entitlement offer to raise A$98.5-million.

The combination of the funds would allow Salt Lake to complete the funding for its Lake Way project, in Western Australia, which is expected to produce 245 000 t/y of sulphate of potash (SoP) over a mine life of 20 years, based on the high grade probable ore reserve of 5.4-million tonnes SoP.

The project remains on track for first SoP production in March 2021, and first SoP sales in April of that year.

Salt Lake on Friday told shareholders that the completed institutional placement would enable first drawdown of $105-million under the Taurus/CEFC syndicated facility agreement in December this year.

“Salt Lake is pleased to have completed this placement of up to A$52-million to enable financial close of the $138-million Taurus/CEFC debt facility. In combination, these funds will ensure the company is well advanced to deliver the Lake Way project,” said CEO Tony Swiericzuk.

In addition to the share placement, Salt Lake is also planning a share purchase plan (SPP) to raise a further A$5-million, also priced at 40c a share. The SPP would allow shareholders to subscribe for up to A$30 000 worth of new shares in the company.

The SPP is expected to open on December 18, and will close on January 29.