Potash explorer raises $8.4m

Local explorer Salt Lake Potash has received commitments for an $8.4 million capital raising to fund ongoing work at its Lake Wells sulphate-of-potash project north of Laverton.

After announcing a $5.2 million placement yesterday, Salt Lake said today it had received commitments from strategic and institutional overseas investors to subscribe for more shares to raise an extra $3.2 million.

Both components of the raising were priced at 32 cents per share, equal to a 12 per cent discount to the company’s 20-day volume weighted average price.

The proceeds of the raising will be used to fund ongoing work at Lake Wells, including a scoping study and for general working capital needs.

Salt Lake director Matthew Syme said the placement was an excellent outcome for the company.

“The strong support received both domestically and from overseas underlines the quality of the Lake Wells project and the exciting potential of salt lake sulphate-of-potash production in Australia,” Mr Syme said.

“Once completed, the funds raised will allow Salt Lake to continue its aggressive exploration program, testwork activities and to complete important technical and commercial studies.”

Salt lake shares closed 10 per cent lower to 36 cents each.