Junior sulfate of potash (SOP) developer Salt Lake Potash Ltd. (SO4), Perth, on March 3 announced the successful syndication of its US$138m Senior Debt Facility, with Sequoia Economic Infrastructure Income Fund (SEQI) and the Commonwealth Bank of Australia (CBA) joining the facility. SEQI and CBA will invest $39 million and $25 million, respectively, into the facility, complimenting existing investments led and arranged by Taurus Mining Finance Fund No. 2 LP (Taurus) and the Australian Government’s Clean Energy Finance Corporation (CEFC).
“I am extremely pleased to welcome SEQI, an experienced global debt investor, and leading Australian bank CBA, into our Senior Debt Facility,” said SO4 CEO Tony Swiericzuk. “The breadth and quality of investors that have been attracted to this facility is testament to the robust financial characteristics and positive environmental credentials of the project and its proficient execution by the SO4 team. We look forward to continuing our relationship with Sequoia and CBA as we pursue our vision of a multi-lake SOP province in Western Australia.”
SO4 is initially targeting 245,000 mt/y of production from its Lake Way SOP project in the northern Goldfields of Western Australia.
Following the syndication, the Taurus investment will be reduced to $35 million from $91 million, and CEFC to $39 million from $47 million. The final facility holding structure is as follows: CEFC $39 million, Sequoia $39 million, Taurus $35 million, and Commonwealth $25 million.