Salt Lake to raise $45.5m

Salt Lake Potash has secured further funding for the development of its Lake Way project in Western Australia after receiving commitments to raise $23.5 million from a share placement, along with a $22 million debt extension from Taurus Funds Management.

The company is one of several WA explorers looking to develop potash projects in the state – including Agrimin, which holds Sulphate of Potash tenements near Wyndham and Broome, and Kalium Lakes, with a protash project near Newman.

Salt Lake said additional funding from Taurus would go towards early construction works (Stage 1) at the Lake Way site, in the Goldfields, while proceeds from the placement will go towards on-lake construction works (Stage 2), which includes the construction of trenches and evaporation ponds.

Funding will also go towards construction of a process plant, due to commence early next year.

The company will issue 33.6 million shares at 70 cents per share, with Euroz Securities and Canaccord Genuity (Australia) acting as joint lead managers to the placement.

The offer represents a 10.3 per cent discount to the last closing share price of 78 cents.

Commenting on the announcement was Salt Lake chief executive Tony Swiericzuk.

“Along with the placement funds, the extension to the debt facility enables us to continue the rapid construction at Lake Way in line with our project schedule,” Mr Swiericzuk said.

In June, the company also raised around $20 million to fund the development of the Salt Lake project.

It has requested a trading halt until December 6, which is pending further announcement.