Salt Lake to raise $20m

Salt Lake Potash has moved a step closer to developing its Lake Way project in Western Australia after receiving $20 million in commitments from a capital raising.

The placement is in addition to $23.5 million raised by the company in December last year to fund ongoing development of the project, as well as $20 million raised in June.

Salt Lake completed its acquisition of the 172 square kilometre Lake Way tenements from Blackham Resources in October.

It purchased the project for $7 million in cash, while also having made a $10 million contribution towards pre-production activities at Blackham’s Williamson gold mine in WA.

The Lake Way project, located in the Goldfields, is scheduled for commissioning in December.

First production is due in the first quarter of FY21.

Under the placement, Salt Lake will issue 58.7 new shares priced at 34 cents per share, representing a 10.9 per cent discount to the 10 day volume weighted average price on the ASX.

Salt Lake directors and management intend to subscribe for a total 3.5 million shares, including 2.25 million shares by chairman Ian Middlemas and 505,883 shares by managing director Tony Swiericzuk.

“These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close,” Mr Swiericzuk said.

Euroz Securities and Canaccord Genuity are acting as joint lead managers to the placement, and MST Access as co-manager.

Salt Lake also said today it was in the process of finalising a $US150 million ($A235 million) financing facility with debt partner Taurus Funds Management.

Shares in Salt Lake were down 4.5 per cent at 12:25pm AEST to trade at 38 cents.