02/05/2017 - 10:49

Salt Lake raises $17m for pilot plant

02/05/2017 - 10:49

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Perth junior Salt Lake Potash has tapped investors for $17.6 million to fund development of a pilot plant at its Goldfields salt lakes project near Laverton.

Salt Lake raises $17m for pilot plant
Salt Lake Potash is exploring for sulphate of potash in the northern Goldfields.

Perth junior Salt Lake Potash has tapped investors for $17.6 million to fund development of a pilot plant at its Goldfields salt lakes project near Laverton.

Salt Lake raised the funds through the placement of 41 million shares at 43 cents each, representing an 11.9 per cent discount to its 20-day volume-weighted average price.

Argonaut acted as manager to the majority of the 11 million shares that were placed to investors in Australia, with Cenkos Securities acting as bookrunner for UK-based investors who committed for 30 million shares.

“We are very pleased to have successfully put in place the next stage of funding for our exciting sulphate of potash projects in Australia, where we are working very hard to become the first producer in a sector with outstanding potential,” the explorer’s chief executive, Matthew Syme, said.

“The excellent support we have received from our shareholders and advisers in the UK and Australia is a great help in our pursuit of that goal and we look forward to continued success together.”

Proceeds from the raising will be used for the planning and initial construction of the pilot plant, as well as ongoing exploration and for general working capital.

The pilot plant will have a throughput of 20,000-40,000 tonnes per annum, processing only brine feed drawn from near-surface product.

Salt Lake's Goldfields operation includes the Lake Wells project.

Salt Lake shares were 7.2 per cent lower to 44.5 cent each at 10:45am.

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