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Be the first with the news that moves the market- Salt Lake Potash (SO4) has received binding commitments for a $20 million placement
- Approximately 58.5 million shares will be issued at 34 cents each
- This money will enable the company to deliver the Lake Way Potash Project in Western Australia on schedule
- Commissioning of the project is expected in December this year and production is set to begin in the first quarter of 2021
- SO4 shares are down 5.06 per cent and are trading for 37.5 cents each
Salt Lake Potash (SO4) has received binding commitments from new and existing institutional investors and shareholders for a $20 million placement.
Approximately 58.8 million shares will be issued at 34 cents each, which represents a 10.9 per cent discount to the volume weighted average price (VWAP) of 38.2 cents.
Subject to shareholder approval, Directors and management are intending to subscribe for up to 3.5 million shares.
This includes 2.25 million from Chairman Ian Middlemas, and 505,883 from CEO and Managing Director Tony Swiericzuk.
The placement will be completed in two phases with phase one issuing 56,067,647 shares on April 24 and the remaining shares will be for the Directors and issued during June.
The money raised will be used to allow SO4 to deliver the Lake Way Potash Project in Western Australia on schedule.
Commissioning of the project is expected in December 2020 and production is set to begin in the first quarter of 2021.
SO4 has been working closely with Debt Partner Taurus to de-risk the project since the release of the bankable feasibility study and initial investment from Taurus.
“We are very pleased to have competed this capital raising with the support of our existing shareholders and to bring in a number of new institutional investors,” Tony commented.
“These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close,” he added.
SO4 shares are down 5.06 per cent and are trading for 37.5 cents each at 1:44 pm AEST.
