Kalium Lakes Ltd (ASX:KLL) has agreed to a non-binding term sheet with German bank KfW IPEX-Bank to provide about $102 million of senior debt funding for the development of the Beyondie Sulphate of Potash (SOP) Project in WA.
The KfW IPEX-Bank debt facilities are in addition to the $74 million debt funding package approved by the Northern Australia Infrastructure Facility (NAIF).
Parts of the funding is expected to be covered by a German export credit guarantee from German government export credit agency Euler Hermes.
READ: Kalium Lakes FEED work highlights lower operating costs at Beyondie SOP project
Kalium Lakes managing director Brett Hazelden said: “We are delighted with the level of support shown by the German and Australian governments for this incredible venture to produce a premium fertiliser which we know will benefit not just Australians but many other countries around the world.
“With the support of NAIF, KfW IPEX-Bank, Euler Hermes, our investors, management and staff the development of Australia’s first SOP production is now one step closer.
“We look forward to continuing to work with our funding group as we move towards a final investment decision.”
With KfW IPEX-Bank’s assistance, Kalium Lakes continues to progress the export credit finance application with Euler Hermes, having received a positive preliminary assessment decision by the German government Inter-Ministerial Committee.