PERTH (miningweekly.com) – Potash developer Salt Lake Potash has received binding commitments to raise A$20-million through a share placement to new and existing institutional investors.
The company on Friday announced that it would issue 58.8-million shares at a price of 34c each, to raise the cash, enabling Salt Lake to continue to deliver its Lake Way project, in Western Australia, on schedule.
The project is expected to start commissioning in December, with first production slated for the first quarter of 2021.
The placement will be conducted in two tranches, with the first consisting of more than 56-million shares, to be issued under the company’s existing placement capacity. The second tranche of more than 2.7-million shares will be subject to shareholder approval.
“We are very pleased to have completed this capital raising with the support of our existing shareholders and to bring in a number of new institutional investors. These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close,” said CEO Tony Swiericzuk.
The A$254-million Lake Way project 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.