- Kalium Lakes (KLL) is raising $61 million to develop the Beyondie Sulphate of Potash Project
- The company will raise the funds through an institutional placement, as well as a fully underwritten entitlement offer
- The shares will be issued at 15 cents, a 69 per cent discount compared to the company’s share price when it last listed in late February
- Proceeds from the capital raise will be used to finish construction at the Beyondie Sulphate of Potash Project, which would be become the only sulphate of potash facility in Australia
- Kalium Lakes shares have been suspended since February this year, last trading for 49 cents per share
Kalium Lakes (KLL) is raising $61 million to develop the Beyondie Sulphate of Potash Project, the first project of its kind in Australia.
The company will raise the funds through an institutional placement as well as a fully underwritten entitlement offer.
The shares will be issued at 15 cents, a 69 per cent discount compared to the company’s share price in late February. Since then the company has voluntarily suspended from listing.
Furthermore, a major shareholder in Kalium Lakes, Greenstone, has already committed $12 million to the placement. Kalium Lakes Board and Senior Management has also committed around $5.8 million to the offer.
The proceeds will fund construction at the Beyondie Sulphate of Potash Project, which is currently 40 per cent complete. So far, the company has put approximately $100 million into the project.
Kalium has enlisted a series of independent engineering specialists to review a recent capital budget revision of the project.
With that review in mind, Kalium believes this offer will be sufficient to complete construction at the project and commence production in the third quarter of 2021.
If successfully completed, Kalium would become the first sulphate of potash producer in Australia.
Kalium Lakes Managing Director, Brett Hazelden, said commencing a new industry in Australia has presented challenges, which previously caused increased capital costs for the project.
“Despite the capital cost overrun the company and the project still remains a financially attractive, long life, low operating cost and high margin business once it commences steady-state operations,” Brett explained
“Importantly our revised capital budget has been verified by independent engineering specialists who have reviewed the project, and we are confident that the offer will fund us through to completion of construction through to first production,” he said.
Kalium Lakes shares have been suspended since February this year, last trading for 49 cents per share.