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Salt Lake completes first part of raising

11th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Potash developer Salt Lake has successfully completed the institutional component of its A$98.5-million equity raise, with ASX-listed Equatorial Resources taking a A$6-million stake.

Equatorial’s subscription for a further 12-million shares in Salt Lake followed on from an original A$10-million share purchase early in July, with the company telling shareholders on Tuesday that the new subscription was an opportunistic use of available treasury funds, given that Salt Lake’s offer price represented an 18% discount to its last closing price.

Equatorial was hopeful that its shareholding in Salt Lake would provide shareholders with higher returns than its cash reserves could generate, with the company saying the capital management decision was progressed by the independent directors, who believed the investment in Salt Lake was in the best interest of shareholders.

Salt Lake on Tuesday announced that the institutional component of the share placement had raised A$71-million, consisting of 1 421-million new shares, issued at a price of 50c each.

The retail entitlement offer will open on August 14, and is expected to raise a further A$27-million.

Funds raised will allow Salt Lake to continue with the rapid development of 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.

Edited by Creamer Media Reporter

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