Kalium secures $102m funding offer

Kalium Lakes is a step closer to a final investment decision on its Beyondie sulphate of potash project, after it received a credit-approved offer from German KfW IPEX-Bank for around $102 million.

The KfW senior debt funding for the development of Beyondie is subject to securing a positive decision from the German government’s inter-ministerial committee, which is expected later this month.

Two-part debt facility has a final maturity of approximately 10 years after completion of construction of the Beyondie plant.

This facility comes in addition to the $74 million Northern Australia Infrastructure Facility loan package approved in February for Beyondie, which has a capex of $216 million.

Kalium Lakes managing director Brett Hazelden said the company was pleased to have been offered the funding, which represented the culmination of many months of diligent work by the Kalium Lakes and KfW IPEX-Bank teams.

“Final facility documentation is well underway and we anticipate receiving German government export credit agency Euler Hermes approval in July,” he said.

The facilities were arranged with the assistance of BurnVoir Corporate Finance, Kalium Lakes’ financial adviser.

In May, Kalium said it expected a final investment decision before the end of June.

Shares in Kalium were up 6 per cent to trade at 62 cents each at 2.30pm AEST.