Kalium Lakes has received another credit approval from German KfW IPEX-Bank for $102 million of funding for the Beyondie sulphate of potash project (BSOPP) in Western Australia.
The capital boost goes on top of a $20.8 million debt from major shareholder Greenstone Resources, and a maximum of $74 million from the Northern Australia Infrastructure Facility (NAIF).
“We are very pleased to have been offered these KfW IPEX-Bank debt facilities, which represent the culmination of many months of diligent work by the Kalium Lakes and KfW IPEX-Bank teams,” Kalium Lakes managing director Brett Hazelden said.
“Kalium Lakes is the only SOP developer to have defined an ore reserve, completed a bankable feasibility study (BFS) and front end engineering design (FEED), obtained a binding offtake agreement with K+S, received both federal and state government environmental approval, have been granted two mining leases, successfully negotiated two native title agreements and now have two credit approved debt facilities totalling approximately $176 million.”
The latest KfW debt facilities comprised a €33 million ($53.44) facility guaranteed by German Government export credit agency Euler Hermes, and a $US37 million ($53.1 million) facility secured against the BSOPP, both maturing around 10 years after project construction.
Final documentation is well under way and Kalium anticipates receiving Euler Hermes’ approval in July, according to Hazelden.
Kalium is well progressed towards completing all financing tasks and a final investment decision.
The company is targeting BSOPP initial production during 2020. The BSOPP has a mine life of up to 50 years based on 5.1 million tonnes ore reserve.