Salt Lake Potash successfully completes share purchase plan
(SO4 ) said it has successfully completed its share purchase plan (“SPP”) after the group increased the offer size to A$8.0m following strong demand from retail investors.
The dual-listed mineral exploration firm outlined that a total of 20 million new fully paid ordinary shares of no-par value will be issued under the SPP at a price of A$0.40 per share.
It detailed that the shares being issued under the SPP will represent approximately 2.7% of the Company’s ordinary shares on issue post completion of Tranche 2 of the placement.
"On behalf of the Company, I would like to thank all of our Shareholders for their ongoing support as evidenced by the strong demand for the SPP,” said CEO, Tony Swiericzuk.
He added that, “The funds raised through the placement and SPP have enabled the Company to achieve financial close on the US$138m Taurus/CEFC debt facility and draw the initial tranche of US$105m and to finalise development of the Lake Way Project."
Investors will recall SO4 executed the $138m Syndicated Facility Agreement with Taurus Mining Finance Fund No.2 L.P and the Clean Energy Finance Corporation in August 2020.
The Lake Way Project at Wiluna in Western Australia is nearing completion with the process plant and overall project 88% and 81% complete, respectively, as of 31 December 2020.
SO4 said strong demand from eligible shareholders in the SPP has necessitated ‘a scale-back’ of valid applications. Applications will now be scaled as a proportion of the total dollar value of valid applications. On a pro rata basis, all eligible shareholders who submitted valid applications have been allocated approximately 83% of their application amount.
The SPP shares are expected to be issued on 3 February 2021 and commence trading on the ASX on 4 February 2021. Shares in Salt Lake Potash have increased by over 15% since the beginning of the month to open 1.80% lower this morning at 27p.
Reasons to follow SO4
Dual-listed Salt Lake Potash operates as a mineral exploration company in Australia and the company plans to build the most sustainable, most rewarding fertiliser project in the world.
The Lake Way Project remains on schedule for first SOP production in March 2021 and first SOP sales in April 2021. The project capital budget remains unchanged at A$264m and the overall project is now 81% complete on a value earned basis as at 31 December 2020.
In late December 2020, the company revealed that it had satisfied all remaining conditions precedents under the Syndicated Facility Agreement (SFA) to achieve financial close and has received debt funds from the first drawdown of $105 million.
Investors will recall SO4 executed the $138m Syndicated Facility Agreement with Taurus Mining Finance Fund No.2 L.P and the Clean Energy Finance Corporation in August 2020.
CEO of SO4, Tony Swiericzuk described achieving financial close on the debt facility as “a substantial milestone in the development of the company and the Lake Way Project.”
Western Australian farming publication, Farm Weekly, said potassium-rich brine processors, SO4 and the other WA companies will be among the world's lowest cost SoP producers.
It outlined that the company’s cash production cost per tonne is expected to be US$205 at an annual production rate from the end of next year of 245,000 tonnes per annum (tpa).
There is no current SOP local production in Australia, and so SOP projects like Lake Way will enable the country to transition from a net importer of potassium fertilisers to an exporter.
In a recent Q&A video with Vox Markets, Salt Lake Potash’s Chief Executive Officer, Tony Swiericzuk, discusses with us the positive progress at their developing Lake Way Project
Follow News & Updates from here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.