Salt Lake Potash (ASX:SO4) is raising $13 million via a share placement to both existing and new institutional and sophisticated investors in Australia and overseas, at an issue price of 42 cents per share.
There was very strong demand for the placement, an endorsement of the recent appointment of Tony Swiericzuk as chief executive officer and also of the company’s world-class Goldfields Salt Lakes sulphate of potash (SOP) project in Western Australia.
Proceeds from the placement will be used to fund construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibility studies, and general working capital.
Notably, the cornerstone investor for the placement is a significant international investment fund.
Furthermore, directors and senior management intend to subscribe for a total of 2.4 million shares in the placement, including 950,000 shares by Swiericzuk and 750,000 shares by the chairman Ian Middlemas.
Swiericzuk said “We are very pleased to have received such strong support from new and existing shareholders to fund the construction of the initial on-lake infrastructure at Lake Way.
“These activities are on the critical path to enabling SO4 to become the first Australian commercial producer of SOP in a global sector with outstanding potential.
“This strong support from investors endorses our view that the Goldfields Salt Lakes Project has enormous potential for value creation and we now look forward to rapidly delivering on this potential for all shareholders and stakeholders.”