- Salt Lake Potash (SO4) has received binding commitments to undertake a $28 million share placement
- All up, 80 million new ordinary shares will be issued to institutional and sophisticated investors at 35 cents
- The price represents a 12.5-per-cent discount to Salt Lake Potash’s last close of 40 cents on May 21
- Subject to shareholder approval, 2.8 million shares will be issued to Chairman Ian Middlemas and CEO and Managing Director Tony Swiericzuk to raise a further $980,000
- SO4 will use the money to fund the general operating expenses of the Lake Way Project in Western Australia
- The company will also use the funds to undertake the final US$33 million (around A$42.7 million) drawdown under the Syndicated Facility Agreement
- SO4 is down 7.50 per cent on the market and shares are trading at 37 cents
Salt Lake Potash (SO4) has received binding commitments to undertake a $28 million share placement.
The company entered a trading halt on May 21 but did not disclose how much it intended to raise or what the funds would be used for.
All up, 80 million new ordinary shares will be issued to institutional and sophisticated investors and shareholders at 35 cents.
This price represents a 12.5-per-cent discount to Salt Lake Potash’s last close of 40 cents on May 21 and a 14-per-cent discount to the five-day volume-weighted average price.
Subject to shareholder approval, 2.8 million shares will be issued to Chairman Ian Middlemas and CEO and Managing Director Tony Swiericzuk to raise a further $980,000.
Salt Lake Potash will use the money to fund the general operating expenses of the Lake Way Project in Western Australia with first sulphate of potash production expected in the coming weeks.
The company will also use the funds to undertake the final US$33 million (around A$42.7 million) drawdown under the Syndicated Facility Agreement (SFA).
“SO4 is pleased to have completed this placement to enable final drawdown under the SFA. The company can now focus on ramping up production as we move to first revenues from the Lake Way Project in the very near-term,” Tony stated.
SO4 is down 7.50 per cent on the market and shares are trading at 37 cents at 11:29 am AEST.