Salt Lake Potash Limited (ASX: SO4) announced the completion of second round of the Placement that was overall intended to raise gross proceeds of $13,000,000 through the issue of 31.0 million new shares.
In the announcement dated 9 January 2019, mineral explorer Salt Lake Potash Limited (ASX: SO4) said that the second tranche of the Placement was completed today following shareholder approval at a General Meeting held on 20 December 2018. It included the issue of 1.7 million shares, comprising a subscription of 950,000 shares by Salt Lake's Chief Executive Officer Mr. Tony Swiericzuk and 750,000 shares by Salt Lake’s Chairman Mr. Ian Middlemas.
A $13.0 million Placement was first released by the company on 9 November 2018. In that release, the company confirmed the strong support of Australian as well as overseas investors to support the construction of the initial on-lake infrastructure at Lake Way.
The issue price for the placement was set to $0.42 per SO4 share, representing a discount of 13.4% to its then last closing price of $0.485 on ASX. In the first tranche, the company issued 29,250,000 shares in November and had issued remaining 1,702,381 shares to Directors in its second tranche completed today.
As per the company’s information, Salt Lake Potash intends to utilize the proceeds raised from Placement towards the funding of Williamson Ponds construction and dewatering of the Williamson Pit. It also plans to use the funds for the ongoing development of on-lake exploration, infrastructure, and feasibility studies as well as for the company's general working capital.
Commenting on the Placement, SO4’s CEO Tony Swiericzuk previously stated that this capital raising is for a critical part of the company’s ambition to become a global leader in SOP production. He added that the strong support of investors demonstrates the enormous potential for value creation in the Goldfields Salt Lake Project.
The company’s core objective is to become a first Australian commercial producer of world-class Sulphate of Potash (SOP). So, the completion of the Placement has enabled the mobilization of construction equipment to Lake Way, with preliminary site preparation works being undertaken in preparation for the imminent construction of the Williamson Ponds and dewatering of the Williamson Pit.
According to the September 2018 Quarterly report, maiden resource estimated for company’s Lake Way project includes measured mineral resource estimate of 32,000t SOP for the Williamson Pit Brine. Whereas, Indicated resource estimate stood at 1,900,000t SOP reportedly calculated from Total Porosity and 490,000t calculated from Drainable Porosity for the Blackham Resources tenements.
Salt Lake also completed a scoping study for Low Capex, High Margin Demonstration Plant with total capital costs of circa A$49m and average cash operating costs (FOB) of approximately A$387/t.
In today’s trading session, i.e., 9 January 2019, there has been no daily price change in the stock of Salt Lake Potash Limited. The stock last traded at $0.440 with a market capitalization of $90.01 million. Over the past 12 months, SO4 stock price has witnessed a negative performance change of 13.73% including a plunge of 15.38% in the last three months.