Photo credit: Salt Lake Potash
Salt Lake Potash (SO4) announced on Tuesday that it has finished Stage 2 On-Lake Construction at the Lake Way Sulfate of Potash Project in Wiluna, Western Australia.
The ASX/AIM-listed firm said it was “a significant construction milestone and represents a further significant de-risking of the project”.
Salt Lake Potash also told investors that the construction progress is on track and in-line with the project schedule.
The Lake Way Project is expected to commence plant commissioning in December 2020, with first Sulfate of Potash sales in March 2021.
Tony Swiericzuk, Chief Executive Officer commented: “Completion of the Stage 2 ponds, ahead of schedule and on budget, means the Company now has the infrastructure in place to supply harvest salts to the process plant in 2021.”
He added: “As these key milestones are completed the project continues to be significantly de-risked with expected first SOP production now just 10 months away"
Shares in Salt Lake Potash were trading flat at 32p on Tuesday
Salt Lake Potash said 400ha of evaporation ponds and 35km of brine abstraction trenches has been constructed.
The Stage 2 pond network included 275ha of brine evaporation ponds which will provide feed salts to the process plant in 2021.
Last week Salt Lake Potash secured an offtake with Mitsui & Co for 4,000 tonnes of SOP per year from the project for 5 years.
The company said focus has shifted to construction of the process plant as well as other non-process infrastructure, where ground clearing and early civil activity has commenced.
Salt Lake Potash said it has drawn down US$45 million from its Taurus Stage 1 facility ahead of finalising its project funding in the coming months.
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