- Kalium Lakes (KLL) launches a capital raise to support ramp-up activities at the Beyondie sulphate of potash project in WA
- A two-tranche placement will raise up to $22 million through the issue of 550 million shares at four cents and a further $8 million will be raised through a share purchase plan
- The company has also negotiated a debt restructure with senior lenders to to facilitate the expansion of the Beyondie project to 120,000 tonnes per annum in 2024
- Company shares are down 35.9 per cent to trade at 5.9 cents at 1:51 pm AEST
Kalium Lakes (KLL) has received firm commitments to raise up to $22 million through a placement.
The placement will be split into two tranches and will issue a total of 550 million shares at four cents each which represents a significant 56.5 per cent discount to the last traded price of 9.2 cents on August 9.
The first tranche will raise around $7.1 million and, subject to shareholder approval, the second tranche will raise the other $14.9 million.
The company’s largest shareholder Greenstone Resources has committed to subscribe for $8 million and co-founder and director Brent Smoothy is subscribing for $2 million under the placement.
Additionally, Kalium Lakes aims to raise up to an additional $8 million through a share purchase plan (SPP).
The SPP will give existing eligible shareholders the opportunity to subscribe for up to $30,000 worth of shares at the same issue price as the placement. The SPP is however subject to shareholder approval.
Kalium plans to use the money to ramp-up production at the Beyondie sulphate of potash mine to 120,000 tonnes per annum. The company is targeting this in the third quarter of 2024.
In addition to the capital raise, the materials stock has negotiated a debt restructure with its two senior lenders to assist with funding ramp-up and expansion plans at Beyondie.
As part of the debt restructure, the existing royalty holders of the company agreed to subordinate and defer the payment of their royalties.
CEO Len Jubber said he was pleased to have undertaken the debt restructure and received commitments for the placement.
“This places the business in a position to now deliver on the targeted ramp-up profile at Beyondie, commencing with the full restart of the SOP process plant in September,” Mr Jubber said.
“I would like to thank our financiers and major shareholders for their support in this process, as well as welcome all new shareholders to the Kalium register.”
Company shares were down 35.9 per cent to trade at 5.9 cents at 1:51 pm AEST.