Junior sulfate of potash (SOP) developer Kalium Lakes Ltd., Balcatta, Western Australia, on July 26 announced that it had raised a total of A$55.6 million (approximately US$38.7 million) through the institution entitlement offer launched earlier this week as part of a A$72 million equity raising that will complete funding for its Beyondie SOP project, 160 km southeast of Newman .
The company plans to use the proceeds, together with a A$102 million credit approval from Germany’s KfW IPEX-Bank (GM July 5, p. 29) and A$74 million from the Northern Australia Infrastructure Facility (NAIF) (GM Feb. 22, p. 29), for construction of the project, as well as for working capital that will take it to first production.
Kalium Lakes Managing Director Brett Hazelden said the successful completion of the equity raising, together with the finalization of the loan facilities, would ensure that the company is “fully funded” to develop the Beyondie project. “After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately commence development of the Beyondie project so that Kalium Lakes becomes Australia’s first sulphate of potash producer in calendar year 2020,” he said.
The company is targeting a 90,000 mt/y SOP stage 1 production facility, ramping up to an 180,000 mt/y SOP full-scale facility (GM March 8, p. 26). It firmed up a 10-year offtake deal with K+S Group, Kassel, in March for the purchase of up to 90,000 mt/y of SOP from Beyondie, potentially starting in 2021 (GM March 29, p. 1).