LONDON (Alliance News) - Salt Lake Potash Ltd on Thursday said that it raised AUD20.3 million, or around GBP11.2 million, after receiving commitments from investors for the issue of 37.5 million shares.
The placement, priced at AUD054 per share, was led by a consortium of cornerstone investors, the company said. Salt Lake shares were trading up 3.5% at 30.00 pence each on Thursday morning.
Part of the consortium were the founders of LionOre Mining International and some key investors in Mantra Resources, who will collectively subscribe for 26.4 million shares to raise AUD14.3 million, Salt Lake explained.
Furthermore, Salt Lake's largest shareholder, Lombard Odier Asset Management (Europe) Ltd, agreed to subscribe for 11.1 million shares to raise AUD6.0 million, confirming its "continued support" for the company.
"Salt Lake Potash is delighted to have attracted a consortium of highly experienced and successful natural resources investors at a pivotal time in the rapid development of its Lake Way project," it added. "The company expects to benefit from advice and collaboration with the consortium, including substantial management, global finance and project development expertise, as well as access to their commodities marketing networks."
Admission of the shares to trading on AIM is expected on June 14, following which the company will have 244.5 million shares in its capital.