Kalium Lakes Receives A$20.8 Million Investment From Greenstone Resources

Kalium Lakes Receives A$20.8 Million Investment From Greenstone Resources

Kalium Lakes Limited (ASX: KLL) is in the business of exploration and development which is based in Balcatta, WA. The current aim of the company is to produce Sulphate of Potash (SOP) which is a high yield, premium fertiliser, from its Beyondie Sulphate Of Potash Project in Western Australia. Currently, no production of SOP is there in Australia.

On 3rd April 2019, the company announced it has secured a conditional cornerstone equity investment with respect to Kalium Lakes’ Beyondie Sulphate of Potash Project. The investment of up to $A20.8 million would be made by Greenstone which is part of the Greenstone Resources II LP group.

The equity investment will be made by Greenstone via a two-tranche placement of 47,305,588 fully paid ordinary shares at a price of A$0.44 per share, which is subject to the satisfaction of some conditions. This investment of A$20.8 million represents 19.99% of the shares on issue in Kalium Lakes as per current capital structure.

There are other strategic support arrangements that these companies have entered into, to assist in the development of the Company’s projects. Mr Stephen Dennis has been nominated by Greenstone as a director in accordance with its rights under the Subscription Deed.

This placement announcement has come after the recently announced binding off-take agreement with K+S plus the securing of project debt funding, consisting of up to A$74 million from NAIF and A$102 million from KFW/Euler Hermes.

The funds from the proceeds will be used for pond construction, bores, trenches, pumping equipment, accommodation village installation, purchase of long lead items, RFDS airstrip, administration and workshops.

Brett Hazelden, Managing Director of Kalium Lakes stated that with the calibre of investment partner Greenstone, Kalium Lakes will be able to continue its speed to achieve the first commercial SOP production in Australia next year. The company’s project financing pathway seems to be clear now after the equity placement, and terms recently agreed for debt funding of up to A$74 million from NAIF and A$102 million from KFW.

He is also pleased to welcome Stephen Dennis to the Board who is currently the Chairman on five ASX listed Boards and has been actively involved in the mining industry for over 30 years. He will join the board after the completion of the placement.

Some of the conditions in accordance to completion of the Placement and triggering of the Board nominee right, Project Steering Committee and Anti-Dilution Right are:

  • The Company needs to obtain a standard waiver from ASX from ASX Listing Rule 6.18.
  • No material adverse change should occur in relation to Kalium Lakes.

The Placement will utilise Kalium Lakes’ existing issue capacity as follows:

  • Tranche 1 – the issue of 18,904,487 shares under the Company’s Listing Rule 7.1A capacity will be issued within 5 business days following execution of the Subscription and Co-Op Agreement
  • Tranche 2 – the issue of 28,401,101 shares under the Company’s Listing Rule 7.1 capacity will be issued within 13 business days of execution of the Subscription and Co-Op Agreement.

The company’s stock closed lower by 1% at A$0.495 as of 3rd April 2019. In the last six months the stock has given a return of 16.28% while YTD return stands at 66.7%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks report for April

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report