Salt Lake Potash (AIM:SO4) has successfully completed its $A71m institutional component of its fully underwritten A$98.5m equity raising at A$0.50 per new ordinary share.
The equity raising, alongside the previously announced $203m debt financing package, means SO4 is fully funded to deliver the Lake Way project in Western Australia on schedule.
SO4 said the underwritten equity raising comprises the institutional component of the accelerated pro rata non-renounceable entitlement offer and the institutional placement.
The institutional offer was ‘strongly’ supported by existing and new institutional investors from Australia and overseas. Meanwhile, a retail entitlement offer will open on August 14, 2020, and is expected to close on August 25, 2020, with the aim of raising A$27m.
The debt financing package includes a A$203m Syndicated Facility Agreement (SFA) with Taurus Mining Finance Fund No2 LP and the Clean Energy Finance Corporation (CEFC).
Shares in Salt Lake Potash have increased from lows of 22p in the past three months to recent highs of 35p. This morning, shares were trading 4.84% lower at 29.5p.
Euroz Securities Limited and Canaccord Genuity Group Inc acted as joint lead managers, joint underwriters and bookrunners to the equity raising and Argonaut as co-manager.
"Completion of this financing package is a major milestone in SO4's evolution,” said Tony Swiericzuk, Chief Executive Officer of Salt Lake Potash in a statement last week.
He added, “It enables the Company to deliver the Lake Way Project on schedule and sets up the business for growth into the future as we pursue our vision of a multiple lake SOP Province in Western Australia.”
The funds will now enable the dual-listed firm to finalise funding and deliver the Sulphate of Potash (SOP) project on schedule with first production expected in the March quarter 2021.
Follow News & Updates from Salt Lake Potash here: