Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) has received binding commitments to place A$20.25mln worth of shares priced at 54 cents each.
Funds will go towards ongoing construction of the Lake Way Project which commenced in March 2019.
This includes the development of on-lake infrastructure, the payment of deposits on certain process plant long-lead items, completion of feasibility studies, and general working capital.
Placement attracts consortium of experienced investors
A number of reputable investors participated in the placement including the founders of LionOre Mining, key investors in Mantra Resources at its inception and Salt Lake’s major shareholder.
LionOre was bought by Norilsk Nickel for US$6.3bn in 2007, whilst Mantra Resources was sold to Rosatom in 2010 for A$1.02bn.
Salt Lake said it was delighted to have attracted a consortium of highly experienced and successful natural resources investors at a pivotal time in the rapid development of its Lake Way Project.
It expects to benefit from advice and collaboration with the consortium, including substantial management, global finance and project development expertise, as well as access to their commodities marketing networks.
READ: Salt Lake Potash non-executive director makes $300,000 share purchase
Salt Lake Potash is the owner of nine large salt lakes in the Northern Goldfields Region of Western Australia.
The immediate focus is on the rapid development of the Lake Way Project, intended to be the first salt-lake brine sulphate of potash (SOP) production operation in Australia.