Salt Lake Potash opens A$5 million share purchase plan as part of A$57 million capital raise


Salt Lake Potash Ltd‘s (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) (FRA:W1D) A$5 million share purchase plan, which forms part of its equity financing to raise up to A$57 million, has opened today.

The SPP will enable existing eligible shareholders, irrespective of the size of their holdings, to participate in the capital raising at the same issue price as the A$52 million placement, and not incur any brokerage or transaction costs.

Eligible shareholders who have a registered address in Australia, New Zealand or the UK can apply for up to A$30,000 worth of new shares in the company.

Issue price

The issue price of A$0.40 (GBP0.226) per share is equal to the price of the placement shares offered to institutional, sophisticated and professional investors.

This represents a 21% discount to the volume-weighted average market price of shares over the last five days on the Australian Securities Exchange (ASX) immediately prior to the SPP being announced.

Use of funds

Funds raised from the offer will go towards:

? Cash back a bank guarantee for the APA gas pipeline;

? Variations to ramp up vs bank model;

? Offset recent AUD strength;

? Transaction fees; and

? General working capital (including corporate and administration costs, and costs of the offer).

Successful tranche-1 placement

The company received binding commitments for a successful share placement to institutional shareholders and investors for up to 130 million new ordinary shares at A$0.40 each to raise up to A$52 million.

This equity raising enabled the first drawdown of US$105 million under the Taurus Mining Finance Fund No2 LP and the Clean Energy Finance Corporation (CEFC) US$138 million Syndicated Facility Agreement.

Lake Way Project well-financed

Combined, the funds will ensure the company is well-financed to deliver the Lake Way Sulphate of Potash (SOP) Project.

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$264 million and the overall project was 77% complete on a value earned basis as of November 30, 2020.

In November 2020 the company started harvesting first plant feed salts from the Train 1 pond network in preparation for plant commissioning, which is expected to commence in February 2021.


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