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Salt Lake Potash gets US$105 million from first drawdown of syndicated facility

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Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) (FRA:W1D) has satisfied all remaining conditions precedents under the Syndicated Facility Agreement (SFA) to achieve financial close and has received debt funds from the first drawdown of US$105 million.


In August 2020, Salt Lake Potash executed the US$138 million SFA with Taurus Mining Finance Fund No2 LP and the Clean Energy Finance Corporation.


Following the completion of Tranche 1 of the placement to raise A$50 million on December 18, 2020, the company has satisfied all remaining conditions precedent under the SFA to achieve financial close.


Funds from the first US$105 million tranche have been received enabling repayment of the US$45 million bridge facility and to further the completion of project construction.


“Substantial milestone”


Salt Lake Potash chief executive officer Tony Swiericzuk: “SO4 is very pleased to have achieved financial close on the US$138 million Taurus/CEFC debt facility and to have drawn down the initial tranche of US$105 million.


“This is a substantial milestone in the development of the company and the Lake Way Project.


“Drawdown has facilitated the repayment of the Bridge facility which enabled SO4 to progress the project substantially since August 2019.


“In combination with the recent placement, these funds will ensure the company is well financed to deliver the Lake Way Project.”


Successful tranche-1 placement


The company recently raised A$50 million via a successful share placement to institutional shareholders and investors at A$0.40 per share.


Combined with the drawdown from the SFA, the funds will ensure the company is well-financed to deliver the Lake Way Sulphate of Potash (SOP) Project.


The Lake Way Project remains on schedule for first SOP production in March 2021 and first SOP sales in April 2021.


The project capital budget remains unchanged at A$264 million and the overall project was 77% complete on a value earned basis as of November 30, 2020.


In November 2020 the company started harvesting first plant feed salts from the Train 1 pond network in preparation for plant commissioning, which is expected to commence in February 2021.


Share purchase plan


Last week, Salt Lake Potash launched a A$5 million share purchase plan, which will enable existing eligible shareholders, irrespective of the size of their holdings, to participate in the capital raising at the same issue price as the A$50 million placement (A$0.40 per share), and not incur any brokerage or transaction costs.


Eligible shareholders who have a registered address in Australia, New Zealand or the UK can apply for up to A$30,000 worth of new shares in the company.


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