Kalium Lakes Announces $102 Mn Debt Funding from the German Bank-KfW IPEX

  • Mar 19, 2019 AEDT
  • Team Kalkine
Kalium Lakes Announces $102 Mn Debt Funding from the German Bank-KfW IPEX

Kalium Lakes Limited (ASX: KLL) today announced about its non-binding term sheet agreement with German Bank KfW IPEX to provide a senior debt of approximately A$102 Mn for the funding of the development of the Beyondie Sulphate of Potash Project. The KfW IPEX-Bank has initiated the credit approval process following the due-diligence process.

The funding will include a long tenor of 10 years complementing the low cost, long tenor funding approved by the Northern Australia Infrastructure Facility (NAIF). The funding terms are attractive as compared to traditional project financing.

The Company’s Managing Director Brett Hazelden stated that they had received incredible support from the German and Australian governments to produce a premium fertilizer to benefit not just Australia but many countries globally.

Mr. Hazelden further stated that the development of Australia’s first Sulphate of Potash production is now one step closer, as they have received excellent support from their management, staff, investors, Euler Hermes, KfW IPEX-Bank and NAIF.

The Company continues to progress on the export credit finance application with Euler Hermes, with the assistance of KfW IPEX-Bank, KLL has received a positive preliminary assessment decision by the German Government Inter-Ministerial Committee. BurnVoir Corporate Finance has been KLL’s financial adviser in relation to the Beyondie Project financing.

In a previous update, on March 14, 2019, one of the Company’s directors Brendon Wayne O’Hara acquired 254,110 fully paid ordinary shares on the cashless exercise of 550,000 options exercisable at $0.25 each and expiring on 16 December 2019, taking the total tally to 254,110 fully paid ordinary shares and 1,450,000 unlisted Management Options.

On March 5, 2019, Kalium Lakes released an investor presentation report where it provided vital information. It reported that there is no production of Potash in Australia, instead 100% of it is fully imported. The company completed its front-end engineering & design (FEED) on March 4, 2019. Early works such as Roads, Comms, Village is underway along with low-cost debt financing from NAIF and Euler Hermes.

KLL’s simple SOP production process involves steps such as

  • Brine Pumping from Bores and Trenches
  • Brine Solar Evaporation
  • Low-cost Salt Harvesting process
  • Purification Processing
  • Premium SOP Fertiliser
  • Agriculture Production

KLL’s operating costs accounted at US$178-207 per tonne. It has the potential to become the lowest cost producer outside of China. It ushers great competitive advantage on Transport and Logistics due to proximity to existing sealed road, Newman airport, and support services. It has approved gas pipeline license along with bulk shipping provision at Kwinana or Geraldton Port.

On stock information, Kalium Lakes’ share last traded at $0.495 up 3.125% (As on March 19, 2019) with the market capitalization of ~$90.77 Mn. Its 52 weeks high was reported at $0.545, and the 52-week low was reported at $0.260. Its absolute return for one year, six months, and three months are 15.66%, 2.13%, and 50% respectively.


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