Kalium Lakes Ltd (ASX:KLL) has successfully raised $14.2 million via an oversubscribed placement of shares to institutional and sophisticated investors at $0.42 each.
Following the settlement of the placement, Kalium will have cash at bank of circa $17.8 million.
The company is aiming to complete the bankable feasibility study and commence early site preparation works at its Beyondie Sulphate of Potash Project in Western Australia.
The oversubscribed placement is a strong endorsement of Kalium’s pre-feasibility study and reserve estimate for the Beyondie project.
It is worth noting that the project has a reserve of 2.66 million tonnes of sulphate of potash, with a projected pre-tax net present value of $388 million.
Brent Smoothy, Kalium’s largest shareholder, committed to subscribe for up to $2 million of the placement, of which only $1.6 million worth of shares were issued owing to strong demand from other investors.
In addition to the placement, Kalium Lakes is also offering eligible shareholders the opportunity to participate in a share purchase plan (SPP) to raise a maximum of $2 million.
The SPP offer will enable eligible shareholders to apply for up to $15,000 worth of new shares at the same price as the placement ($0.42 per share).