Salt Lake Potash Limited Process Plant Contracts Awarded (8865P)
15 Giugno 2020 - 8:00AM
UK Regulatory
TIDMSO4
RNS Number : 8865P
Salt Lake Potash Limited
15 June 2020
15 June 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
PROCESS PLANT CONTRACTS AWARDED
Salt Lake Potash Limited ( SO4 or the Company ) is pleased to
announce that it has awarded EPC and EPCM contracts to GR
Engineering Services Ltd ( GRES ) for construction of the Process
Plant and Non-Process Infrastructure ( NPI ) at its Lake Way
Project. These contracts combined represent more than 40% of the
total project capital requirement.
HIGHLIGHTS
-- The Engineering, Procurement and Construction (EPC) contract
involves the provision of plant, labour, materials and construction
services for the process plant and NPI valued at A$85m.
-- The Engineering, Procurement and Construction Management
(EPCM) contract involves the provision of services for the
engineering, procurement and construction management for areas of
the process plant and NPI, valued at A$22m.
-- Terms and risk allocation within the contracts have been
approved by the Company's debt partner.
-- Following substantial progress in detailed engineering and
vendor procurement, the Project capital budget has increased
marginally from A$254m to A$264m, including an unallocated A$18m
contingency.
-- Bulk earthworks for the site is now complete, while major
vendor procurement is 77% complete and offsite fabrication
acitivites are substantially progressed.
-- Construction of the permanent 100-person village was
completed in April, with an additional 160 rooms also now complete
in preparation for construction ramp up.
-- The EPCM and EPC contracts are conditional on financial close
and GRES continue to advance project delivery under the existing
early services arrangement.
TONY SWIERICZUK, Chief Executive Officer
"We are very pleased to have executed these contracts with GRES
who have been a critical contracting partner by our side throughout
the design development of the Lake Way processing plant and
off-lake infrastructure since early 2019. The finalisation of these
major Project contracts and the substantial engineering and
procurement activity to date has further de-risked the Lake Way
Project execution and confidence around the capital budget."
PROCESS PLANT DESIGN & CAPITAL BUDGET
The process plant has been designed by both GRES and Wood plc.
It is a simple reverse flotation, conversion and re-crystalisation
process utilising well-established technology.
As part of the detailed engineering undertaken since completion
of the Bankable Feasibility Study (BFS) in October 2019, which now
sits at over 85% complete, as well as the negotiated contract risk
allocation undertaken with GRES, the Company has agreed a revised
capital budget of A$264m, a A$10m increase to the published BFS
capital budget. The revised A$264m budget includes an A$18m
contingency allowance.
Bulk earthworks for the process plant site are now complete,
while major vendor procurement is 77% complete and offsite
fabrication acitivites are substantially progressed. The Project
remains on schedule for first sales in Q1, 2021.
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
Company's Managing Director, Mr Tony Swiericzuk.
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.
Production Target
The Lake Way 245ktpa Production Target stated in this
announcement is based on the Company's Bankable Feasibility Study
as released to the ASX on 11 October 2019. The information in
relation to the Production Target that the Company is required to
include in a public report in accordance with ASX Listing Rule 5.16
and 5.17 was included in the Company's ASX Announcement released on
11 October 2019. The Company confirms that the material assumptions
underpinning the Production Target referenced in the 11 October
2019 release continue to apply and have not materially changed.
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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