Kalium Lakes gets new investor

A London-based private equity fund has agreed to a conditional cornerstone equity investment of $20.8 million in Kalium Lakes, giving it a 19.99 per cent holding in the aspiring potash producer.

The proposed investment by Greenstone Resources will be undertaken by a two-tranche placement of 47,305,588 ordinary shares at 44 cents per share.

This compares to its current share price of 49.5 cents per share.

Kalium Lakes managing director Brett Hazelden said securing a cornerstone investment partner of the calibre of Greenstone would allow the company to continue its momentum and achieve Australia’s first commercial sulphate of potash project, Beyondie.

It follows announcements of debt funding for Kalium Lakes from the Northern Australia Infrastructure Facility in February and German government-owned bank KfW IPEX in March. 

 “With this key equity placement and terms recently agreed for debt funding of up to $74 million from NAIF and $102 million from KFW, our project financing pathway is now clearly defined,” Mr Hazelden said.

In a statement, Kalium said the funds would be used to facilitate the expansion of the early works program and include the purchase of long lead items, pond construction and key infrastructure.

Greenstone Resources senior partner and co-founder Mark Sawyer said his team assessed hundreds of potential investment opportunities around the world each year.

“What stands Kalium apart from most is the quality of work which has been undertaken to de-risk the project and bring it to this point,” Mr Sawyer said.

“In addition, the management team, led by Brett is world class.

“Our team has worked through an in-depth independent due diligence process over several months and we believe Kalium is an exciting investment opportunity and soon to be Australia’s first independent potash producer.”

The conditions of the agreement include for Greenstone to provide management assistance by appointing a director and two representatives to a project steering committee, offering technical and financing assistance and strategic assistance by introducing the company to investors and financiers.

Under its subscription deed rights, Greenstone has nominated Stephen Dennis as a director.

Mr Dennis has held senior management positions at MIM Holdings, Minara Resources and Brambles Australia.