Salt Lake potash syndicates US$138m Senior Debt Facility
said it has successfully syndicated its $138m Senior Debt Facility, with UK based Sequoia Economic Infrastructure Income Fund ("SEQI”) as well as the Commonwealth Bank of Australia (“CBA”).
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 to support the development of the Company’s Lake Way SOP Project in Western Australia.
SEQI and CBA will invest US$39m and US$25m, respectively, into the facility, complimenting the existing investments led and arranged by Taurus Mining Finance Fund No. 2 L.P as well as the Australian Government's Clean Energy Finance Corporation.
SO4, the dual-listed sulphate of potash firm, said that following the syndication, the Taurus investment will be reduced to US$35m from US$91m and CEFC to US$39m from US$47m.
"I am extremely pleased to welcome SEQI, an experienced global debt investor, and leading Australian bank CBA, into our Senior Debt Facility,” CEO, Tony Swiericzuk told investors.
“The breadth and quality of investors that have been attracted to this facility is testament to the robust financial characteristics and positive environmental credentials of the project and its proficient execution by the SO4 team,” he added.
Shares in So4 have risen by over 7% since the beginning of 2021. Following a strong quarterly report released back in January. SO4’s focus now remains on looking forward to production and first sulphate of potash sales at its Lake Way project in March 2021.
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.
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.
Yesterday, the mineral explorer successfully completed its share purchase plan (“SPP”) after the group increased the offer size to A$8.0m following strong demand from retail investors.
Swiericzuk stated 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."
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.
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