(Alliance News) - Fertiliser firm Salt Lake Potash Ltd said on Friday it intends to raise AUD23.5 million, or approximately GBP12.3 million, through a share placing.
The company will issue 3.6 million shares at a price of AUD0.70 per share to fund the development of the Lake Way project, which is in the Goldfields region of Western Australia.
The Lake Way project is a sulphate of potash project expected to return annual earnings of AUD111 million before interest, taxation, depreciation and amortisation.
Salt Lake Potash - which has offices in London and Australia - has secured a further AUD22 million of funding from Taurus Funds Management. Taurus has extended the stage one debt facility by the AUD22 million, Salt Lake said, to AUD45 million.
"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 Tony Swiericzuk, chief executive.
"Our close working relationship with Taurus has enabled Salt Lake to extend the stage one debt facility whilst 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."
Shares in Salt Lake were untraded on Friday in London, last quoted at 39.60 pence on Friday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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