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Salt Lake Potash Lake Way Project 74% complete and on-track for production next quarter

The project remains on target for first sulphate of potash production in quarter one of 2021.

Salt Lake Potash Ltd - Salt Lake Potash Lake Way Project now 74% complete and on track for production in March quarter
Salt pavement monitoring on site

Salt Lake Potash Ltd (ASX:SO4) remains confident that the Lake Way Project in the Western Australian Goldfields is on-track for first sulphate of potash (SOP) production in quarter one of 2021.

Construction of the project is now 74% complete, including

  • Engineering nearing 100% complete and major procurement more than 98% complete;
  • Major items installed over the past month include the SOP leach tank, surge tank, plant feed and waste conveyors, and attritioners;
  • SOP and Schoenite crystallisers have been erected and welding work is ongoing; and
  • Major items delivered to site in the past month include conveyer equipment, lump breaker, heat exchangers, screens, attritioners, flotation cells, fabricated hoppers and ongoing structural steel.

Feed hopper and surge bin crusher station.

SOP Production

Salt Lake Potash is on the cusp of making the transition from a developer to a producer as it completes the final stages of construction.

The company aims to develop a 245,000 tonnes per year SOP operation.

EBITDA is likely to be A$111 million per year and Lake Way would have one of the lowest operating costs for global SOP producers.

Process plant site beside Goldfields Highway.

Funding package

The company has delivered the funding package for the project which includes two components:

  • A US$138 million (A$203 million) Syndicated Facility Agreement (SFA) with Taurus Mining Finance Fund No2 LP and the Clean Energy Finance Corporation (CEFC); and
  • A fully underwritten A$98.5 million placement and accelerated non-renounceable entitlement offer (ANREO) at 50 cents per share completed in September 2020.

In combination, these funds will enable the company to complete the funding and deliver the project on schedule, with first SOP production expected in the March quarter.

Quick facts: Salt Lake Potash Ltd

Price: 23.75 GBX

AIM:SO4
Market: AIM
Market Cap: £139.01 m
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Salt Lake Potash Ltd's (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) Tony Swiericzuk caught up with Proactive's Andrew Scott for an update on project development. He says development of the Lake Way Sulphate of Potash (SOP) Project in Western Australia is 'flying along' with on-lake and off-lake...

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