Salt Lake Potash Limited Convertible Note Placement (8309R)
02 Luglio 2020 - 08:39AM
UK Regulatory
TIDMSO4
RNS Number : 8309R
Salt Lake Potash Limited
02 July 2020
2 July 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
CONVERTIBLE NOTE PLACEMENT
Salt Lake Potash Limited ( SO4 or the Company ) is pleased to
advise that it has received commitments to raise A$15m through the
placement of unsecured zero-coupon convertible notes ( Convertible
Notes ) to corporate and institutional investors.
HIGHLIGHTS
-- The Convertible Notes have been structured as deferred equity
with zero coupon and mandatory conversion into Salt Lake ordinary
shares of no par value (Shares) at the lower of 45c/Share or a 5%
discount to any future equity raising of at least A$10m.
-- The funds will allow SO4 to continue the rapid development of
Lake Way as construction activities ramp-up through July. Plant
practical completion and first SOP sales remain on schedule for the
March 2021 quarter.
-- The Company is in the final stages of completing the debt
financing that is required to deliver project financial close at
Lake Way. A final agreement is expected to be executed within
weeks.
-- The Convertible Note funds have been placed to a combination
of new and existing institutional investors and a new corporate
investor, Equatorial Resources Limited (ASX: EQX).
TONY SWIERICZUK, Chief Executive Officer
"We are pleased to complete this financing with the support of
existing and new shareholders. These funds will enable the Company
to continue the rapid development of the Lake Way Project on
schedule, as site construction activity accelerates through July.
Significant progress has been made on the debt financing in recent
weeks and we expect to be in a position to deliver full project
financial close in the weeks ahead."
convertible note placement
The Company has received commitments to raise A$15 million
through the placement of unsecured and unlisted zero coupon
Convertible Notes, subject to mandatory conversion in the event of
any future equity raising of at least A$10m. The conversion price
will be the lower of 45c/Share or a 5% discount to the equity
raising price.
If there is no equity raising for greater than A$10m prior to
the maturity date of 30 June 2021 (Maturity Date), then the
Convertible Notes will mandatorily convert at 90% of the average of
the five lowest daily VWAPs during the 20 days prior to the
Maturity Date. Holders will also have the right to convert at any
time after 30 September 2020, but prior to the Maturity Date or
mandatory conversion at a 5% discount to 5-day VWAP. A floor price
of 30c per Share applies to all conversions.
The placement funds will enable SO4 to continue to deliver the
Lake Way Project to schedule, with first production expected in the
March 2021 quarter. The funds will be used primarily on Lake Way
Project development including Process Plant procurement,
construction and ongoing operation of Stage 1 & 2 Evaporation
Ponds The Company is in the final stages of completing the debt
financing that is required to deliver project financial close at
Lake Way. A final agreement is expected to be executed within
weeks.
Commitments for the Convertible Notes have come from
Institutional Investors (holding & non-holding) and a new
Corporate investor Equatorial Resources Limited which has
subscribed for A$10 million. Conversion of the notes to be issued
to Equatorial is subject to SO4 shareholder approval at a meeting
expected to be held in August 2020. Additional information will be
provided in a notice of meeting to be issued shortly. Ian Middlemas
and Mark Pearce are directors of both SO4 and Equatorial Resources
Limited. Neither has participated in the decision to enter the
subscription agreement for either company.
The placement of the remaining Convertible Notes to raise A$5
million is being made under the Company's Listing Rule 7.1
placement capacity. The Convertible Notes are otherwise issued on
terms considered customary.
The Convertible Notes are considered to be the most efficient
mechanism for raising funds to continue the rapid development of
the project in the lead up to financial close. The placement did
not expose the Company to additional costs, a protracted process
and market volatility that may have been experienced with a
pro-rata issue or other form of capital raising.
Argonaut acted as Financial Advisor on the placing.
For further information or to view a full version of this
announcement, please visit www.so4.com.au or contact:
Tony Swiericzuk / Richard Knights Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Richard Tonthat / Seamus Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Fricker
Derrick Lee / Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
This announcement has been authorised for release by the Board
of Directors.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Forward Looking Statements
This announcement may include forward-looking statements. These
forward-looking statements are based on Salt Lake Potash Limited's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Salt Lake
Potash Limited, which could cause actual results to differ
materially from such statements. Salt Lake Potash Limited makes no
undertaking to subsequently update or revise the forward-looking
statements made in this announcement, to reflect the circumstances
or events after the date of that announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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July 02, 2020 02:39 ET (06:39 GMT)
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