- Minerals company Kalium Lakes (KLL) launches a two-phase placement to raise roughly $50 million
- The funds will be raised through the issue of approximately 278 million new shares at 18 cents
- The company will also be undertaking a share purchase plan to raise a further $10 million but has the right to scale back or accept oversubscriptions
- Kalium will use the money from the placement and share purchase plan to expand its Beyondie Sulphate of Potash Project from 90,000 tonnes per annum (tpa) to 120,000tpa
- Shares in Kalium last traded at 22 cents on October 11
Minerals company Kalium Lakes (KLL) has launched a two-phase placement to raise roughly $50 million.
Approximately 278 million new shares will be issued to shareholders at 18 cents, representing an 18.2 per cent discount to Kalium’s closing price of 22 cents on October 11.
Phase one will see up to 209.8 million new shares be issued to raise roughly $37.8 million.
Subject to shareholder approval, phase two will issue 68 million shares to raise a further $12.2 million.
Kalium’s largest shareholder, Greenstone, has committed to take up between $8.8 million and $11.3 million to retain a 19.8 holding in the company.
Shares are expected to settle on October 18 and be allocated and begin trading on the ASX on October 19.
Kalium will also be undertaking a share purchase plan (SPP) to raise up to an additional $10 million.
Eligible shareholders will be able to apply for up to $30,000 worth of shares which will be priced the same as the placement of 18 cents.
The company may accept applications that result in the SPP raising more or less than $10 million at its discretion.
The plan is set to open on October 22, close on November 11 and issue shares on November 18.
Kalium will use the money from both the placement and share purchase plan to expand its Beyondie Sulphate of Potash Project from 90,000 tonnes per annum (tpa) to 120,000tpa.
This is expected to be achieved by Q4 2022 and cost an estimated $45.3 million.
CEO Rudolph van Niekerk commented on the Beyondie Project.
“The funding will expand Beyondie from 90ktpa to 120ktpa which is well-timed into a rising sulphate of potash (SOP) price environment and several potential upside opportunities with COVID-19 restrictions normalising,” Mr van Niekerk said.
“With the additional production to 120ktpa, Beyondie remains a long-life, low-cost operation with the potential to further expand production.”
Kalium also released its full-year statutory accounts, revealing it had recorded a net loss of $623,273 for the period ending June 30, 2021.
This is down from the net loss of nearly $18.9 million in the prior corresponding period (pcp).
As of June 30, Kalium had cash and cash equivalents totalling $34.2 million, down from the $54.6 million in the pcp.
Shares in Kalium last traded at 22 cents on October 11.