Salt Lake raises $20m

Salt Lake Potash has raised $20.25 million via a share placement, with the funds set to advance the development of its Lake Way project.

Shares were issued at 54 cents each under the placement, which is the same as its previous closing price.

In a statement, Salt Lake said the placement was led by a consortium of cornerstone investors, including the founders of LionOre Mining, as well as key investors in Mantra Resources.

LionOre was bought by Norilsk Nickel for $US6.3 billion in 2007, while Mantra Resources was sold to Rosatom in 2010 for around $1 billion.

Is largest shareholder, Lombard Odier, agreed to subscribe for shares worth $6 million.

“Salt Lake Potash is delighted to have attracted a consortium of highly experienced and successful natural resources investors at a pivotal time in the rapid development of its Lake Way project,” it said.

“The company expects to benefit from advice and collaboration with the consortium, including substantial management, global finance and project development expertise, as well as access to their commodities marketing networks.”

The placement will fund ongoing construction of the Lake Way Project, including the development of on-lake infrastructure, the payment of deposits on certain process plant long-lead items, completion of feasibility studies, and general working capital.

Salt Lake released an initial mineral resource for its Lake Way project in March.

The project is located 15 kilometres south of Wiluna and encompasses 270 square kilometres of lake area.

First production is planned for late 2021.

Shares in Salt Lake were up 7.4 per cent to trade at 58 cents each at 11am AEST.