$22 million for the back of Beyondie
Friday, August 19th, 2022
WA-based Kalium Lakes has received firm commitments from investors for a two-tranche placement of fully paid ordinary shares to raise $22 million.
It will comprise the issue of about 550 million new shares at a price of 4 cents per share.
Shareholders also have the opportunity to subscribe for up to a maximum of $30,000 worth of shares under a share purchase plan to raise up to an additional $8m.
Kalium Lakes’ largest shareholder, Greenstone Resources, has committed to take up to $8m under the placement, with its participation in tranche two subject to the company obtaining shareholder approval. Co-founder and director Brent Smoothy has also committed to $2m under the placement, which also depends on shareholder agreement.
The capital raising is being undertaken to:
- fund additional working capital during ramp-up of Kalium Lakes’ Beyondie Sulphate of Potash Mine (BSOPM), which targets an initial production target run-rate of 80 kilotonnes per annnum by Q1 CY2023
- assist in the expansion of the BSOPM to 120ktpa production run-rate, which is targeted to be achieved by Q3 CY2024.
The company has successfully negotiated the terms of a debt restructure with its two senior lenders, KfW IPEX-Bank and the Northern Australia Infrastructure Facility, to facilitate the expansion to 120ktpa.
As part of the debt restructure, the existing royalty holders have also agreed to subordinate and defer the payment of their royalties (including the royalties over the tenements at Ten Mile Lake, Ten Mile West and Lake Sunshine).
Kalium Lakes chief executive officer Len Jubber said the equity injection placed the business in a position to now deliver on the targeted ramp-up profile at Beyondie, commencing with the full restart of the SOP process plant in September.
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