PERTH (miningweekly.com) – Administrators have been appointed to ASX-listed sulphate of potash (SoP) producer Kalium Lakes.
The administrators will call a first meeting of creditors on August 15.
Kalium Lakes in June suspended share trading and announced a strategic process to explore potential strategic and corporate opportunities to reposition the company and its capital structure, with the company appointing an independent financial adviser to conduct the process and evaluate all opportunities to maximise shareholder value.
At the time, Kalium Lakes was given access to the remaining A$10-million of a A$20-million liquidity facility. Following the first A$5-million drawdown of the liquidity facility, the company’s drawn senior debt amounted to A$201-million, with an additional undrawn debt capacity of A$5-million from the liquid facility and a further A$2.6-million available under the project term facility provided by KfW IPEX-Bank GmbH.
The administrators on Friday said that the strategic process announced by Kalium Lake would continue and the receivers would immediately pursue the conclusion of a transaction.
Kalium Lakes earlier this year revealed that the company would require additional long-term funding for its Beyondie SoP project over the next two financial years, to achieve its targeted production rate of between 90 000 t/y and 100 000 t/y.
Kalium Lakes is targeting a 55 000 t/y production rate during the December 2023 quarter, and a yearly production rate of 50 000 t/y to 60 000 t/y for the 2024 financial year.