PERTH (miningweekly.com) – ASX-listed Salt Lake Potash will raise A$23.5-million through a share placement to a number of new Australian institutional investors, to fund the ongoing development of its Lake Way sulphate of potash (SoP) project, in Western Australia.

Furthermore, the company on Friday reported that it had also extended the Stage 1 debt facility from Taurus Funds Management by a further $15-million, to $45-million, ahead of the main project development facility.

Under the share placement, Salt Lake would place some 33.6-million shares at a price of 70c, with the majority of the shares to be placed under its existing placement capacity. The placement price represented a 10.3% discount to Salt Lake’s last closing price.

Meanwhile, the company has also extended the Stage 1 debt facility from Taurus by a further $15-million to fund the ongoing construction of key infrastructure prior to the draw-down of the main project development fund.

Salt Lake in August this year mandated Taurus to provide a $150-million project finance facility, with the Stage 1 facility consisting of $30-million to provide the funds for early construction work, while the main project development fund would be used to refinance the Stage 1 facility and to fund project development and working capital costs for the Lake Way project.

“We are very pleased to complete the next stage of our funding, having attracted such strong interest from a number of new institutional investors and ongoing support of our existing institutional shareholders,” said Salt Lake CEO Tony Swiericzuk.

“Our close working relationship with Taurus has enabled Salt Lake to extend the Stage 1 debt facility while we complete documentation and satisfaction of conditions precedent for the main project development facility.

“Along with the placement funds, the extension to the debt facility enables us to continue the rapid construction at Lake Way in line with our project schedule.”

A recently completed bankable feasibility study into the Lake Way project estimated that it would require a capital investment of A$254-million to produce 245 000 t/y of SoP over a mine life of 20 years, based on the high grade probable ore reserve of 5.4-million tonnes SoP.