- WA-based potash company Salt Lake Potash (SO4) has entered back-to-back trading halts ahead of a capital raise and debt resolution
- In August, the company raised over $98 million through a placement and entitlement offer
- SO4 also secured a financing package worth US$138 million (roughly A$186.9 million)
- The previously-raised funds are being put towards the Lake Way Project, which will help reduce carbon emissions by producing salt lake of potash for the agriculture industry
- What the upcoming raise will be put towards or what the debt resolution will look like, is not yet clear
- As Salt Lake Potash went into a trading halt late this afternoon, its shares were trading 4.95 per cent lower at 48 cents
Salt Lake Potash (SO4) has entered back-to-back trading halts ahead of a capital raise.
The company is also preparing to update the market on a resolution of debt financing that is likely in relation to a financing package secured a couple of months ago.
SO4 will remain in a trading halt until Thursday, December 3, unless details of the financing and capital raise are released earlier.
The WA-based potash company raised over $98 million in August which came in the form of a placement and an entitlement offer. The money is being put towards the Lake Way Project.
Lake Way is located in the Goldfields region of Western Australia and is being developed to help reduce carbon emissions from the agriculture sector by producing 245,000 tonnes of sulphate of potash per year.
While it is not yet clear how much the company is raising or what the latest raise will be used for, it's likely going towards strengthening its financial position to develop its project.
In terms of the debt financing, SO4 also announced in August it had secured a financing package with Taurus Mining Finance Fund and Clean Energy Finance (CEFC) worth US$138 million (roughly A$186.9 million). Like the $98.5 million capital raise, this financing was being put towards developing Lake Way.
At this stage, it's unclear what exactly the resolution of debt will look like.
As Salt Lake Potash went into a trading halt late this afternoon, its shares were trading 4.95 per cent lower at 48 cents just after 3:00 pm AEDT.