Salt Lake Potash (LON:SO4) (ASX:SO4) has received binding commitments from new and existing institutional investors and shareholders for a A$20 million placement.
The dual-listed mineral exploration firm said around 58.8m shares will be issued at 0.34 cents each, representing a 10.9% discount to the volume weighted average price of 0.382 cents.
The proceeds will enable the company to deliver the Lake Way Potash Project in Western Australia on schedule for commissioning in December 2020 and first production in Q1 2021.
Directors and management are intending to subscribe for up to 3.5m shares which includes 2.25m shares from Chairman Ian Middlemas, and 505,883 shares from CEO and MD, Tony Swiericzuk.
Shares in Salt Lake Potash closed at 21.5p on 16 April.
The placement will be completed in two tranches with the first issuing 56,067,647 shares on April 24 and the remaining shares to be issued during June for the Directors.
"We are very pleased to have completed this capital raising with the support of our existing shareholders and to bring in a number of new institutional investors,” said Swiericzuk.
SO4 said it has been working closely with its debt partner, Taurus, to de-risk the project since the release of the bankable feasibility study and the initial investment from Taurus.
“These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close,” added Swiericzuk.
The company recently reported that potash markets continue to remain ‘very resilient’ with no material changes to the published benchmark indexes.
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