24/11/2017 - 12:12

$14m placement for Kalium

24/11/2017 - 12:12

Bookmark

Save articles for future reference.

Kalium Lakes will raise $14.2 million in an oversubscribed share placement with plans to complete a bankable feasibility study and start early site preparation works at its Beyondie sulphate of potash project in the Pilbara.

Kalium is developing its Beyondie sulphate of potash project in the Pilbara.

Kalium Lakes will raise $14.2 million in an oversubscribed share placement with plans to complete a bankable feasibility study and start early site preparation works at its Beyondie sulphate of potash project in the Pilbara.

Perth-based Kalium will issue 33.5 million shares at 42 cents each, a 13.4 per cent discount, with the placement receiving strong support from new and existing institutional and sophisticated investors.

Majority shareholder Brent Smoothy has committed $1.6 million to the deal, with his stake subject to shareholder approval.

The placement will leave Kalium with nearly $18 million cash, allowing for the completion of a bankable feasibility study at Beyondie and the commencement of early site preparation works while also providing general working capital for the project.

Managing director Brett Hazelden said the oversubscription was a reflection of the positive pre-feasibility study.

The company released the PFS to the market last month, which detailed a base case of 150,000 tonnes per annum of sulphate of potash (SOP) and an initial mine life of 21 years, at an operating cost of between $244 and $253 per tonne of SOP.

The study also indicated a capex spend of $220 million is required to bring the asset into production.

“We continue to gain momentum and accumulate the support of investors and brokers who appreciate and understand the level of detail we are able to provide on every aspect of the Beyondie sulphate of potash project,” Mr Hazelden said.

“The company looks forward to completing the pilot scale works, bankable feasibility study and project financing during the course of next year.

The company is also offering shareholders the opportunity to participate in a share purchase plan to raise up to $2 million.

Macquarie Capital and BurnVoir Corporate Finance acted as joint lead managers for the placement.

Shares in Kalium were down 7.2 per cent to 45 cents at 2pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options