Salt Lake Potash Ltd Closes Debt Financing With First Production Imminent

0

The Company has received debt funds from the final US $ 33 million tranche of its US $ 138 million senior credit facility and has received funds from its recent A $ 28 million placement.

() () () (FRA: W1D) continues to make progress towards the production of the first potassium sulphate (SOP) from the Lake Way project in Western Australia in the short term by concluding the debt financing process.

The company received debt funds from the final US $ 33 million tranche of its US $ 138 million senior credit facility and also received funds from its recent A $ 28 million placement.

Guarantee facility executed

Additionally, Salt Lake Potash executed the A $ 18 million guarantee facility with the Sequoia Economic Infrastructure Fund (SEQI), which is unlocking A $ 18 million of equity in the project.

These funds will be used for general operating expenses during the ramp-up of the Lake Way SOP project.

CEO and Managing Director Tony Swiericzuk said, “We are delighted to have completed the debt financing process and would like to thank all of our financial stakeholders for their support in funding the Lake Way project.

“We are now looking forward to delivering the project and ramping up SOP production over the next 9 to 12 months. “

Senior debt facility

At the end of the placement, the company has satisfied all the remaining conditions precedent to draw down the last tranche of the Senior Debt.

As a result, the last tranche of US $ 33 million was drawn, with US $ 11 million in escrow for early redemption in June 2022.

On the right track

The company remains on track for the first SOP production this month and early earnings from the project.

Commissioning of the Lake Way processing plant began in March with the introduction of crop salts to the front of the plant.

As of May 24, 26 of the plant’s 34 processing units had started to be commissioned and construction on the project was largely complete.


Source link

Share.

About Author

Leave A Reply