TIDMSO4
RNS Number : 0045K
Salt Lake Potash Limited
17 April 2020
17 APRIL 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
AUSTRALIAN INSTITUTIONAL PLACEMENT
Salt Lake Potash Limited ( SO4 or Company ) is pleased to advise
that it has received binding commitments for a successful share
placement to existing and new institutional shareholders and
investors to raise A$20.0 million.
HIGHLIGHTS
-- SO4 will issue 58.8 million new ordinary shares at A$0.34
each to raise gross proceeds of A$20 million (Placement).
-- The Placement further strengthens SO4's share register with
strong demand from existing institutional shareholders.
-- The funds will enable SO4 to continue to deliver the Lake Way
Project to schedule, with commissioning expected in December 2020
and first production in Q1 2021.
TONY SWIERICZUK, Chief Executive Officer
"We are very pleased to have completed this capital raising with
the support of our existing shareholders and to bring in a number
of new institutional investors. These funds will enable us to
continue the rapid development of Lake Way as we progress towards
project financial close."
Placement
The Company has agreed to place approximately 58.8 million
shares to a number of existing and new institutional shareholders
and sophisticated investors at A$0.34 each to raise A$20.0 million
before costs, further confirming the continued support for SO4 and
the Lake Way Project.
The Placement funds will be used primarily on Lake Way Project
development, including Process Plant procurement and construction
and ongoing operation of Stage 1 & 2 Evaporation Ponds. The
funds will enable SO4 to continue to deliver the Lake Way Project
to schedule for commissioning in December 2020 and first production
in Q1 2021.
SO4 has been working closely with its debt partner Taurus Funds
Management (Taurus) to progressively de-risk the project since the
release of the Bankable Feasibility Study and the initial Taurus
investment. The teams are working collaboratively to finalise the
Facility Agreement, following which the Company will draw down on
the Project Development Facility.
SO4 Directors and management intend to subscribe for a total of
3.5 million shares in the Placement, including 2,250,000 shares by
Chairman, Mr Ian Middlemas and 505,883 shares by Managing Director
and CEO, Mr Tony Swiericzuk, subject to shareholder approval.
Euroz Securities Limited and Canaccord Genuity (Australia)
Limited acted as Joint Lead Managers to the Placement, and MST
Access acted as Co-Manager to the Placement.
The issue price of A$0.34 represents a 10.9% discount to the 10
day VWAP of $0.382 on ASX.
The Placement will be completed in two tranches as follows:
(a) 56,067,647 shares will be issued on 24 April 2020 under ASX
Listing Rule 7.1 (26,722,306 shares) and ASX Listing Rule 7.1A
(29,345,341 shares). Following the issue of these shares the
Company will have 16,011,812 remaining issue capacity under ASX
Listing Rule 7.1 and no remaining issue capacity under ASX Listing
Rule 7.1A.
(b) 2,755,883 shares to be subscribed for by Directors will be
issued during June 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 the subscription for 7,352,942
shares in the Placement by Lombard Odier Asset Management (Europe)
Limited, a substantial shareholder in the Company, 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 56,067,647 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 24 April 2020
(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 350,529,953 Ordinary Shares
on issue with voting rights attached. SO4 holds no shares in
treasury. This figure of 350,529,953 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.
The voluntary halt of trading of the Company's shares on ASX was
lifted prior to the opening of trade on 17 April 2020, following an
announcement to the ASX market regarding the above.
For further information 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
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
IOEFIFSESSIDLII
(END) Dow Jones Newswires
April 17, 2020 02:00 ET (06:00 GMT)
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