Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Kalium Lakes is hoping to raise A$72-million through an institutional placement and an accelerated non-renounceable entitlement offer to fund the construction of its Beyondie sulphate of potash (SoP) project, in Western Australia, as well as the working capital to first production.
Kalium on Wednesday announced a share placement of up to 35-million new shares to institutional investors, to raise an initial A$17.5-million. The share placement will be priced at 50c a share, representing a 26.5% discount to the company’s last closing share price.
A 1-for-2.19 accelerated pro rata non-renounceable entitlement offer, under which up to 109-million shares will be placed, is expected to raise an additional A$54.6-million.
“The successful completion of today’s equity raising together with finalization of the loan facilities will ensure that Kalium Lakes is fully funded to develop the Beyondie project, following our announcement last week regarding the approval by the German government credit agency Euler Hermes in respect of the A$102-million KfW IPEX-Bank debt facilities,” said Kalium Lakes MD Brett Hazelden.
“After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately commence development of the Beyondie project so that Kalium Lakes becomes Australia’s first SoP producer in 2020.”
Kalium’s major shareholder Greenstone Management, which holds a 19.8% interest in the company, has committed to subscribe for new shares under the placement and will take up its entitlement offer, contributing some A$14.46-million to the capital raise.
Certain other founding shareholders have also thrown their support behind the endeavour, committing to take up a combined A$8-million of the offer.
The A$250-million Beyondie project will produce 150 000 t/y SoP, with the option to incrementally phase the project through a ramp-up from 75 000 t/y to 150 000 t/y to minimise operational and financial risks.