Kalium to complete Beyondie funding with $72m raising

Kalium Lakes is on the verge of becoming Australia’s first sulphate of potash producer, after it launched a rights issue and placement that will complete funding for its Beyondie project.

The institutional placement is set contribute $17.5 million, and a $54.6 million one-for-2.19 rights issue will comprise the remainder of the capital raising.

The shares will be issued at 50 cents per share, reflecting a 26.5 per cent discount to its last close price of 68 cents per share.

It said its biggest shareholder, UK-based private equity firm Greenstone, which owns a 19.8 per cent stake in the company, has committed to subscribe for approximately $14 million under the placement and rights issue, and will sub-underwrite up to $5 million of any retail shortfall.

Macquarie Capital will act as lead manager and bookrunner to the equity raising.

Kalium managing director Brett Hazelden said the proceeds of the raising, together with loan facilities from KfW IPEX-Bank and the Northern Australian Infrastructure Facility worth a combined $176 million, would get its Beyondie project into production.

“After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately commence development of the Beyondie project so that Kalium Lakes becomes Australia’s first sulphate of potash producer in calendar year 2020,” Mr Hazelden said.

Beyondie is located 160 kilometres south-east of Newman.

Shares in Kalium are in a trading halt at 68 cents each.