TIDMSO4
RNS Number : 9024V
Salt Lake Potash Limited
06 December 2019
6 December 2019 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
INSTITUTIONAL PLACEMENT AND DEBT FACILITY EXTENSION
Salt Lake Potash Limited (SO4 or Company) is pleased to advise
that it has received binding commitments from a number of new
Australian institutional investors and existing institutional
shareholders for a placement to raise A$23.5 million for the
ongoing development of the Lake Way Project (Project).
Taurus Funds Management (Taurus or the Lenders) have continued
their support of the Project by extending the Stage 1 Debt Facility
by a further US$15 million (A$22 million).
HIGHLIGHTS
-- SO4 has secured further funding for the Project via a
placement and debt facility extension for total A$45.5 million in
available funding
-- SO4 will issue 33.6 million new ordinary shares at A$0.70
each to raise gross proceeds of A$23.5 million (Placement)
-- The Placement further strengthens SO4's share register with
strong demand from a number of new and existing institutional
investors
-- Taurus has continued their support of the Project by agreeing
to extend the Stage 1 Facility by US$15 million (A$22 million) to
US$45 million ahead of the main Project Development Facility.
-- The combined additional funding ensures the Company is well
placed to continue with the rapid development of the Lake Way
Project, including the Stage 2 On-lake construction which is
underway and commencement of Process Plant construction in early
2020.
TONY SWIERICZUK
SO4 Chief Executive Officer
"We are very pleased to complete the next stage of our funding,
having attracted such strong interest from a number of new
Instutional investors and ongoing support of our existing
Institutional shareholders. Our close working relationship with
Taurus has enabled SO4 to extend the Stage 1 Debt Facility whilst
we complete documentation and satisfaction of conditions precedent
for the main Project Development Facility. Along with the Placement
funds, the extension to the debt facility enables us to continue
the rapid construction at Lake Way in line with our project
schedule."
Placement
The Company has agreed to place approximately 33.6 million
shares to a number of new Australian institutional investors and
existing institutional shareholders at A$0.70 each to raise A$23.5
million before costs, further confirming the continued support for
SO4 and the Lake Way Project.
The Placement under the Company's existing Listing Rule 7.1 and
7.1A placement capacity will contribute to the continued rapid
development of the Lake Way Project, including construction of
Stage 2 on-lake infrastructure and commencement of site works for
the process plant in early 2020, along with ongoing exploration of
other lakes and general working capital.
SO4 Directors and management intend to subscribe for a total of
1.3 million shares in the Placement, including 428,571 shares by
Managing Director and CEO, Mr Tony Swiericzuk and 275,000 shares by
Chairman, Mr Ian Middlemas, subject to shareholder approval. In
addition, Lombard Odier Asset Management (Europe) Limited ("Lombard
Odier"), a substantial shareholder in the Company, has agreed to
subscribe for 4,830,710 shares in the Placement.
Euroz Securities Limited and Canaccord Genuity (Australia)
Limited acted as Joint Lead Managers to the Placement.
The issue price of A$0.70 represents a 10.3% discount to the
last closing price of $0.78 on ASX.
The Placement will be completed in two tranches as follows:
(a) 32,867,858 shares will be issued on 13 December 2019 under
Listing Rule 7.1 (7,248,770 shares) and Listing Rule 7.1A
(25,619,088 shares). Following the issue of these shares the
Company will have 29,627,369 remaining issue capacity under Listing
Rule 7.1 and no remaining issue capacity under Listing Rule
7.1A.
(b) 703,571 shares to be subscribed for by Directors will be
issued on or about 17 January 2020 following shareholder approval.
A notice of general meeting will be sent to shareholders
shortly.
Related Party transactions
The proposed participation in the Placement by Mr Tony
Swiericzuk, Mr Ian Middlemas and by Lombard Odier constitute
related party transactions under Rule 13 of the AIM Rules for
Companies. The independent directors, having consulted the
Company's nominated adviser, Grant Thornton UK LLP, consider that
the terms of the transactions are fair and reasonable insofar as
the Company's shareholders are concerned.
Settlement and dealings
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") for 32,867,858 Ordinary Shares, pursuant to the
Placement, which rank pari passu with the Company's existing issued
Ordinary Shares, to be admitted to trading. Dealings on AIM are
expected to commence at 8:00am on or around 13 December 2019
(Admission).
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules (DTRs), following Admission of the
first tranche of shares, SO4 will have 289,611,231 Ordinary Shares
on issue with voting rights attached. SO4 holds no shares in
treasury. This figure of 289,611,231 may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in the Company, under the ASX Listing
Rules or the DTRs.
Stage 1 Facility Extension
In August 2019, SO4 announced that it had mandated Taurus Funds
Management to provide up to US$150m project financing for the Lake
Way Project.
The Stage 1 Facility (Facility) provided initial access to
funding for early construction works for the Lake Way Project and
enabled completion of the BFS prior to drawdown of the main Project
Development Facility (PDF). The Facility is also funding civil
works including the second stage of trenches and key evaporation
ponds currently under construction, which will provide the initial
harvest salts to enable the feed for plant commissioning. Given the
lead-time required to generate harvest salts, the Facility is a
crucial part of accelerating Lake Way's development towards
commercial SOP production.
Following completion of the BFS, SO4 has been working with
Taurus to complete documentation and satisfy the conditions
precedent to the PDF. To fund the ongoing construction of key
infrastructure prior to drawdown of the PDF, the parties have
agreed to a US$15m extension to the Facility. Terms and conditions
of the extension to the Facility are consistent with the original
terms, and the extended Facility will be refinanced upon drawdown
of the PDF.
The voluntary halt of trading of the Company's shares on ASX was
lifted prior to the opening of trade on 6 December 2019, following
an announcement to the ASX market regarding the above.
For further information please visit www.so4.com.au or
contact:
Tony Swiericzuk / Clint McGhie Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Richard Tonthat / Ben Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Roberts
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
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
IOEEADASEEANFAF
(END) Dow Jones Newswires
December 06, 2019 02:00 ET (07:00 GMT)
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