Salt Lake Potash says final execution of Lake Way is ‘imminent’

Francesca Morgan
RNS Newswire
11:01, 31st July 2020

Salt Lake Potash (AIM:SO4) FOLLOW said construction of the process plant at its Lake Way Sulphate of Potash (“SOP”) project in Western Australia has continued to progress during the June quarter with the first SOP production remaining on schedule for the March quarter of 2021.

In a quarterly update for the period ending 30 June 2020, Salt Lake Potash said both stage 1 & 2 pond networks at Lake Way are in operation and precipitating harvest salts and brine chemistry which continues to align with the company’s previously modelled outcomes.

A 277kg bulk sample of harvest salts was taken from the Stage 1 Kainite Ponds, reporting average potassium grades of 7.5%, above assumed average plant feed in the BFS of 6.8%.

Trench development at Lake Way recommenced in June with the total trench length extended to 48km by the end of the quarter from 35km at the end of the March quarter.

At the site, the Company completed bulk civil earthworks and commenced pouring concrete foundations during the quarter while procurement advanced significantly with the project now over 90% procured for major packages and key vendor contracts executed.

Shares in Salt Lake Potash have risen steadily over the past three months and were trading 0.79% higher at 31.75p this morning following the announcement.

SO4 price chart

In August 2019, SO4 announced that it had mandated Taurus Funds Management (Taurus or the Lenders), to provide up to US$150m project financing for the Lake Way Project.

SO4 told investors today that it has made “significant progress” in finalising the debt financing which will enable the company to finally complete construction works at Lake Way. It said this morning that execution of the final agreement is imminent.

Last week, SO4 was granted the 'Green' label certification for debt issued to develop Lake Way, confirming the positive environmental contribution of the project’s fertiliser production.

In addition, a technical assessment at the site concluded that a Mannheim process plant of comparable capacity would have 60% higher CO2 emissions than the Lake Way Project.

SO4 has previously noted how investor interest in green investment has grown rapidly over the past decade, with estimates showing the global volume of green debt has grown from less than A$5 billion in 2010 to more than A$150 billion in 2018.

Salt Lake Potash’s long-term plan at Lake Way is to develop an integrated Sulphate of Potash operation, producing from several of its nine salt lakes.

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