Kalium Lakes has taken a major step towards becoming Australia’s first potash producer by launching a $72 million raising that will complete funding for the Beyondie project in Western Australia.
The company plans to use the funds for construction of the sulphate of potash (SOP) project, as well as for working capital that will take it to first production.
Its raising coincides with a $102 million credit approval from the KfW Ipex-bank and $74 million from the Northern Australia Infrastructure Facility (NAIF) to fund the project.
Kalium Lakes managing director Brett Hazelden said the completion of the equity raising, together with the finalisation of the loan facilities would ensure the company was “fully funded” to develop the Beyondie project.
“After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately commence development of the Beyondie project so that Kalium Lakes becomes Australia’s first sulphate of potash producer in calendar year 2020,” Hazelden said.
“I am incredibly proud of the work undertaken to date by the Kalium Lakes’ team, bearing in mind that we now move into the critical development phase, so that we can begin production and deliver substantial value from this world class, low cost and high margin asset for shareholders.”
The $72 million equity raising comprises an institutional placement of up to 35 million new shares in Kalium Lakes to raise up to $17.5 million. It also includes a one for 2.19 entitlement offer of up to 109 million new shares to raise approximately $54.6 million.
All new shares under the offer will be issued at a price of 50 cents per share, which represents a 26.5 per cent discount to the last closing price of 68 cents on July 23.