Salt Lake Potash Limited March 2020 Quarterly Report

Data : 30/04/2020 @ 08:00
Fonte : UK Regulatory (RNS & others)
Titolo : Salt Lake Potash Limited (SO4)
Quotazione : 33.5  0.0 (0.00%) @ 08:41
Quotazione Salt Lake Potash Grafico

Salt Lake Potash Limited March 2020 Quarterly Report

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Da Apr 2020 a Lug 2020

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TIDMSO4

RNS Number : 4491L

Salt Lake Potash Limited

30 April 2020

 
 30 April 2020   AIM/ASX Code: SO4 
 
 
 SALT LAKE POTASH LIMITED 
------------------------- 
 

MARCH 2020 QUARTERLY REPORT

Salt Lake Potash Limited ( SO4 or the Company ) is pleased to present its Quarterly Report for the period ending 31 March 2020. The Company is focussed on rapidly progressing development of its Lake Way SOP Project in Wiluna, Western Australia.

HIGHLIGHTS

On-Lake Construction & Operations: Stage 2 commissioned

-- Completed Stage 2 on-lake civil work consisting of 275ha of evaporation pond area, taking total pond area to 400ha with 35km of brine abstraction trenches.

-- Potassium grades across the pond network continue to align with model.

Process Plant and Non-Process Infrastructure:Civil earthworks and procurement

-- Completed bulk civil earthworks at the process plant and non-process infrastructure (NPI) site.

-- Process plant procurement significantly advanced with major components including the crystalliser, centrifuges, attritioners and flotation cells now commited.

Lake Way Village completed

-- Construction and installation of the permanent 100 person Lake Way village was completed in April 2020, with workers moving in and first meal served on 24 April.

-- Completion of the village has reduced the daily travel time for workers by 90 minutes, further de-risking the Project and improving quality of life for the workforce.

Binding Offtake term sheets: Mitsui added to offtake portfolio

-- Announced a binding term-sheet with Mitsui & Co. (Asia Pacific) for the sale of 4kt per annum of premium water soluble SOP over five years.

-- SO4 has now secured offtake for 224kt per annum of the 245kt per annum Lake Way production, with the remainder to be sold into spot and local markets.

Paleochannel Development: Bore drilling commenced at Lake Way Paleochannel

-- Commenced drilling the Lake Way Paleochannel and installation of brine extraction bores.

-- Completed drilling the West Creek water supply borefield.

Institutional Placement

-- In April, SO4 received binding commitments to raise A$20m through the issue of 58.8m shares at A$0.34 each.

-- The funds will enable SO4 to continue to deliver the Lake Way Project and achieve first SOP production in Q1'21.

Covid-19 Business Update

-- Operational changes in place to minimise potential impact of Covid-19, with no material impact on schedule expected.

-- No current delays expected for delivery of items ordered for process plant and non-process infrastructure.

-- Cost saving measures implemented including temporary 40% reduction to Director fees and executive salaries.

Upcoming milestones

-- Finalisation of full project funding.

-- Commencement of process plant construction.

on-lake construction

During the quarter SO4 completed the Stage 2 pond network, comprising of 275ha of evaporation pond area and 35km of brine extraction trenches, taking the total pond network size to 400ha. Stage 2 pond construction included the installation of 12,000 sheet piles and 200,000 cubic metres of earthworks to form the walls of the ponds, as well as 20 kilometres of pipework to move the brine from the trenches to the ponds.

Stage 3 pond construction is scheduled to commence in Q4 2020, with harvest salt availability aligning with process plant ramp up.

on-lake operations

Potassium grades across the pond network continue to follow the system curve and align with modelled outcomes. The Stage 1 pond system is producing salts from all five harvest cells during the quarter. The Stage 2 pond system is commissioned and is precipitating harvest salts.

To operate the brine abstraction trench network and evaporation pond system, a Brine Transport System (BTS) has been installed. Work on the BTS continued throughout the quarter.

The BTS provides flexibility to pump brine from across the different areas of the trench network and discharge into the various Halite ponds. Brine is drawn from four sumps strategically located across the lake, connected with pumps and pipes to individual cells across the pond network.

Process Plant construction

At the process plant site, ground clearing and bulk civil earthworks were completed during the quarter. This work included pad preparation for construction of the process plant, power plant, warehouse, workshop, administration and site village, as well as construction of the raw water pond, runoff settlement ponds and site access roads. Concrete foundations for the process plant and power station have commenced.

Procurement activities accelerated during the quarter with a number of major plant components ordered including the centrifuges, attritioners, flotation cells, sizing screens, thickeners, rotary drier, impact crusher, lump breakers and conveyer belts. Associated components including supporting steelwork, motor control centres, switchrooms, transformers, low-voltage and high-voltage cable have also been ordered. In combination these components make-up a material portion of the plant construction capex.

The Company is currently finalising the Engineering Procurement Construction Management (EPCM) and Engineering Procurement Construction (EPC) contracts with GR Engineering Servies (GRES), who are operating on site under an early services arrangement.

During the quarter GRES and Wood Group continued to develop the Process Plant design.

lake way village completed

Following the period-end construction and installation of the permanent infrastructure for the 100 person Lake Way village was completed, with workers moving in and first meal served on 24 April 2020. Completion of the on site village has reduced the daily travel time for workers by 90 minutes between the temporary accommodation and the processing plant site, further de-risking the Project and improving quality of life for the workforce. Work continues on the 200 person construction village designed to house workers during peak construction in the second half of the year.

LAKE WAY PALEOCHANNEL

During the quarter SO4 commenced drilling on the Lake Way paleochannel. The initial scope of work includes drilling at nine (9) pad locations along the Eastern side of the lake.

Installation of the first brine extraction bore was successfully completed in April with strong airlift flows observed.

In addition to the drilling on the Lake Way paleochannel, the Company also completed drilling at West Creek where fresh water supplies for the processing plant and potable water for the village will be sourced.

Water has been extracted from the West Creek area since the 1980's. SO4 secured a groundwater abstraction licence for 0.7GL/ year covering the existing borefield area in mid 2019. During the quarter SO4 drilled a total of seven (7) production bores and two (2) monitoring bores.

Offtake

During the quarter SO4 signed another binding term-sheet for the sale of 4kt per annum of SOP with Mitsui & Co. (Asia Pacific). The agreement has a five year term and is for the sale of premium quality water soluble SOP into select countries in Asia.

The Company has now secured binding term sheets for 224kt per annum of the 245kt per annum Lake Way production, with the remaining tonnes expected to be sold into local and spot markets.

Approvals

SO4 has continued to advancefinal permitting required to support full-scale operations. Work to date has not identified any social or environmental factors that could constitute fatal flaws or insurmountable obstacles to gaining necessary statutory approvals. The final outstanding approvals for the Lake Way Project are currently being progressed on schedule.

The EPA has determined that the full project scope requires formal assessment with no public review. As part of this assessment the EPA requires an Environmental Review Document to be prepared and submitted.

The seasonal rainfall received at Lake Way in early 2020 created conditions on site to allow meaningful additional environmental studies to be commenced. These surveys will support the Environmental Review Document and include:

-- Flora survey. The survey involved targeted searches for priority species, soil profiling around Tecticornia, vegetation health monitoring of existing quadrats and installation of additional vegetation health quadrats.

   --    Fauna survey. 
   --    Stygofauna survey of bores within the SO4 Lake Way production area. 
   --    Shorebird assessment of Lake Way. 
   --    Short range invertebrate assessment. 

In addition to these surveys a number of studies have been continued and/or commenced to support the EPA submission which include:

   --    Visual impact assessment of the full scale operation. 

-- Ground water modelling optimisation to include all factors from the proposed paleo channel bores.

-- Flood study modelling optimisation. The flood model has been improved as additional knowledge has been gained into the behaviour of lake surface water movement based on the recent rain events.

   --    Vadoze zone modelling. 
   --    Salt dissipation study. 

The studies and surveys will be completed shortly for submission of the ERD in the coming weeks.

The Company has continued to obtain Ministerial consents to use the land under section 18 of the Aboriginal Heritage Act 1972, for additional development as needed to meet ongoing project requirements with a number of applications being approved, including for the paleochannel bore works that have commenced.

In respect of the processing plant and village construction, the Company has received:

-- Mining Proposal approval from the Department of Mines, Industry Regulation and Safety (DMIRS) for the construction of the processing plant and village.

-- Project Management Plan approval from the Department of Mines, Industry Regulation and Safety (DMIRS) for the construction of the processing plant and village.

-- Works Approval from the Department of Water and Environment Regulation (DWER) for the construction of the processing plant and a sewage treatment plant to support the village.

In respect of the initial paleochannel bores, project approvals for the construction of bores to obtain brine from the paleo channel were received from the Department of Mines, Industry Regulation and Safety (DMIRS) to enable this work to commence.

SO4 has obtained the necessary water licences to extract process water from the West Creek borefield and for brine extraction from the lake. Once the studies described above have been completed the final brine extraction licences will be sought.

exploration at lake marmion & lake Ballard

The Company is currently progressing resource development work at both Lake Marmion and Lake Ballard as part of a strategic review to prioritise which of SO4's lakes would be next development priority. During the quarter a passive seismic geophysical survey at both Lake Marmion and Lake Ballard were completed.

At Lake Marmion the results will be merged with the data from the 2019 survey to provide a comprehensive picture of the depth and width of the paelochannels beneath the lake surface. Laboratory analysis of the brine samples taken in the December 2019 quarter are ongoing.

At Lake Ballard, the survey was undertaken to further improve on the results of the 2018 gravity survey.

covid-19 business update

SO4 has responded with changes to its operations as Government advice regarding Covid-19 has evolved in order to minimise potential impacts. Specifically, interstate workers have elected to transit home while non critical movement to and from site has been minimised. All interaction with the local Wiluna community has ceased. Use of the Wiluna airport for travel to/from site has not been impacted and this airport continues to support the SO4 business. These changes to operations in response to Covid-19 are not currently expected to have an impact on the project schedule.

The Company has received no information from suppliers to suggest material delays to any items ordered for the process plant and non-process infrastructure.

As part of the Company's response to Covid-19, SO4 has also implemented a number of efficiencies and cost saving measures to ensure the ongoing success of the Project. These include a temporary 40% reduction to Director fees, executive and management salaries (including the Managing Director) and a 20% reduction to employees and contractors, to be monitored on a monthly basis effective April 2020.

Project Funding

Institutional Placement

In April 2020, the Company announced it had received binding commitments to place 58.8 million new ordinary shares at A$0.34 each to raise gross proceeds of A$20m. The shares were placed to existing and new institutional investors, confirming ongoing support for SO4 and the Lake Way project.

As part of the placement SO4 Directors and management subscribed for a total of 3.5 million shares. This includes 2,250,000 shares by Chairman, Mr Ian Middlemas and 505,883 shares by Managing Director and CEO, Mr Tony Swiericzuk, that they intend to subscribe for subject to shareholder approval.

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 achieve first production in Q1 2021.

Debt Financing

In August 2019, SO4 announced that it had mandated Taurus Funds Management (Taurus or the Lenders), 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 at the Lake Way Project and enabled completion of the BFS prior to drawdown of the main Project Development Facility (PDF) . The Facility also funded civil works for the Stage 2 trenches and evaporation ponds, which will provide the initial harvest salt feed for plant commissioning.

To fund the ongoing construction of key infrastructure prior to drawdown of the PDF, the parties agreed to a US$15m extension to the Facility in December 2019. These funds were drawn down during the quarter and the extended Facility will be refinanced upon drawdown of the PDF.

Following completion of the BFS, SO4 has been working closely with Taurus to complete the documentation, derisk the project and satisfy the conditions precedent to the PDF in the near future. In addition to the PDF, the Company is assessing complimentary funding options to ensure that it is fully funded to complete construction in line with the Project schedule.

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 / 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 
 

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.

Appendix a - disclosures in accordance with asx listing rule 5.3

Summary of Mining Tenements

 
       Project            Status       Type of Change     License Number    Interest (%)   Interest (%) 
                                                                              31-Dec-19      31-Mar-20 
                                                                                          ------------- 
 Western Australia 
====================  =============  =================  =================  =============  ============= 
 Lake Way 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E53/1878           100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E53/2057           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E53/1897           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E53/2059           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E53/2060           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/208            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1102           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1103           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1104           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1105           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1106           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               M53/1107           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E53/1862           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E53/1863           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               E53/1905           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               E53/1952           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               E53/1966           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               E53/2049           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               P53/1642           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               P53/1643           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               P53/1644           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               P53/1645           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               P53/1666           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               P53/1667           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               P53/1668           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               M53/121            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               M53/122            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               M53/123            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               M53/147            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               M53/253            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               M53/796            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               M53/797            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               M53/798            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               M53/910            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -                L53/51            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/207            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/211            100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               L53/212            100%           100% 
====================  =============  =================  =================  =============  ============= 
                                             - 
  West                 Application            -              L53/214            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/215            100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               L53/216            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/217            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/218            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/210            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               L53/219            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted          Granted             G53/24             -             100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application      Application           G53/25             -             100% 
====================  =============  =================  =================  =============  ============= 
 Lake Wells 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E38/2710           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E38/2821           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E38/2824           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Outer East             Granted             -               E38/3055           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Single Block           Granted             -               E38/3056           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Outer West             Granted             -               E38/3057           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North West             Granted             -               E38/3124           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               L38/262            100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               L38/263            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South West             Granted             -               L38/264            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               L38/287            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South Western          Granted             -               E38/3247           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               M38/1278           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               E38/3380           100%           100% 
====================  =============  =================  =================  =============  ============= 
    North              Application      Application          E38/3469            -             100% 
====================  =============  =================  =================  =============  ============= 
    Central            Application      Application          E38/3470            -             100% 
====================  =============  =================  =================  =============  ============= 
 Lake Ballard 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E29/912            100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E29/913            100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E29/948            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E29/958            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South East             Granted             -               E29/1011           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South East             Granted             -               E29/1020           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South East             Granted             -               E29/1021           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South East             Granted             -               E29/1022           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E29/1067           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E29/1068           100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                 Application           -               E29/1069           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E29/1070           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Irwin 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E37/1233           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E39/1892           100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E38/3087           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E37/1261           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central East           Granted             -               E38/3113           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E39/1955           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North West             Granted             -               E37/1260           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South West             Granted             -               E39/1956           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Minigwal 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E39/1893           100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E39/1894           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E39/1962           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central East           Granted             -               E39/1963           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E39/1964           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South West             Granted             -               E39/1965           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Marmion 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E29/1000           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E29/1001           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E29/1002           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E29/1005           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               E29/1069           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Noondie 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E57/1062           100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E57/1063           100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E57/1064           100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                   Granted             -               E57/1065           100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E36/932            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               E36/984            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central              Application           -               E36/985            100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Barlee 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E30/495            100%           100% 
====================  =============  =================  =================  =============  ============= 
  Central                Granted             -               E30/496            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E77/2441           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Raeside 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               E37/1305           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Austin 
====================  =============  =================  =================  =============  ============= 
  North                Application           -               E21/205            100%           100% 
====================  =============  =================  =================  =============  ============= 
  West                 Application           -               E21/206            100%           100% 
====================  =============  =================  =================  =============  ============= 
  East                   Granted             -               E58/529            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               E58/530            100%           100% 
====================  =============  =================  =================  =============  ============= 
  South West             Granted             -               E58/531            100%           100% 
====================  =============  =================  =================  =============  ============= 
 Lake Moore 
====================  =============  =================  =================  =============  ============= 
    Central              Granted             -               E59/2344           100%           100% 
====================  =============  =================  =================  =============  ============= 
 Northern Territory 
====================  =============  =================  =================  =============  ============= 
 Lake Lewis 
====================  =============  =================  =================  =============  ============= 
  South                  Granted             -               EL 29787           100%           100% 
====================  =============  =================  =================  =============  ============= 
  North                  Granted             -               EL 29903           100%           100% 
====================  =============  =================  =================  =============  ============= 
 

Related Party Payments

During the quarter ended 31 March 2020, the Company made payments of $114,000 to related parties and their associates. These payments relate to existing remuneration arrangements (executive salaries, director fees and superannuation).

Appendix B - Competent Person Statement and Disclaimer

Competent Persons Statement

The information in this announcement that relates to Production Targets and Ore Reserves for Lake Way is extracted from the announcement entitled 'Outstanding Bankable Feasibility Results for Lake Way' dated 11 October 2019. This announcement is available to view on www.so4.com.au. The information in the original ASX Announcement that related to Production Targets and Ore Reserves was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member of the Australasian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists, and Mr Robert Kinnell, who is a member of the Australasian Institute of Mining and Metallurgy and a Fellow of the Geological Society of London. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting Company. Mr Kinnell is a full time employee of Salt Lake Potash Limited. Mr Jeuken and Mr Kinnell have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. Salt Lake Potash Limited confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Production Target

The Lake Way 245ktpa Production Target stated in this presentation 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.

Appendix C - asx aPPIX 5B

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
----------------------------------------------------- 
 Salt Lake Potash Limited 
 ABN                Quarter ended ("current quarter") 
---------------    ---------------------------------- 
 98 117 085 748                         31 March 2020 
                   ---------------------------------- 
 
 
 Consolidated statement of cash                 Current quarter   Year to date 
  flows 
                                                     $A'000         (9 months) 
                                                                      $A'000 
 1.     Cash flows from operating 
         activities 
 1.1    Receipts from customers                               -              - 
 1.2    Payments for 
             (a) exploration & evaluation 
              (if expensed)                             (3,000)       (30,389) 
             (b) development                                  -              - 
             (c) production                                   -              - 
             (d) staff costs                            (2,286)        (7,573) 
             (e) administration and corporate 
              costs                                       (231)        (1,859) 
 1.3    Dividends received (see note                          -              - 
         3) 
 1.4    Interest received                                    70            149 
        Interest and other costs of 
 1.5     finance paid                                       (3)          (982) 
 1.6    Income taxes paid                                     -              - 
        Government grants and tax 
 1.7     incentives                                         912            912 
             Other (provide details if 
 1.8          material) 
               *    Business Development                (1,042)        (2,523) 
                                                              -          (126) 
 
               *    Security Deposits 
                                               ----------------  ------------- 
        Net cash from / (used in) 
 1.9     operating activities                           (5,580)       (42,391) 
-----  --------------------------------------  ----------------  ------------- 
 
 2.     Cash flows from investing 
         activities 
 2.1    Payments to acquire: 
        (a) entities                                          -              - 
        (b) tenements                                         -       (10,000) 
        (c) property, plant and equipment               (1,142)        (1,629) 
        (d) exploration & evaluation                          -              - 
         (if capitalised) 
        (e) investments                                       -              - 
        (f) other non-current assets 
         - Mine Properties in development              (34,147)       (40,842) 
 2.2    Proceeds from the disposal 
         of: 
        (a) entities                                          -              - 
        (b) tenements                                         -              - 
        (c) property, plant and equipment                     -             35 
        (d) investments                                       -              - 
        (e) other non-current assets                          -              - 
 2.3    Cash flows from loans to other                        -              - 
         entities 
 2.4    Dividends received (see note                          -              - 
         3) 
 2.5    Other (provide details if                             -              - 
         material) 
                                               ----------------  ------------- 
        Net cash from / (used in) 
 2.6     investing activities                          (35,289)       (52,436) 
-----  --------------------------------------  ----------------  ------------- 
 
 3.     Cash flows from financing 
         activities 
        Proceeds from issues of equity 
         securities (excluding convertible 
 3.1     debt securities)                                   475         30,891 
 3.2    Proceeds from issue of convertible                    -              - 
         debt securities 
 3.3    Proceeds from exercise of                             -              - 
         options 
        Transaction costs related 
         to issues of equity securities 
 3.4     or convertible debt securities                   (122)          (982) 
 3.5    Proceeds from borrowings                         22,555         66,600 
 3.6    Repayment of borrowings                           (198)          (238) 
        Transaction costs related 
 3.7     to loans and borrowings                          (669)        (3,080) 
 3.8    Dividends paid                                        -              - 
 3.9    Other (provide details if                             -              - 
         material) 
                                               ----------------  ------------- 
        Net cash from / (used in) 
 3.10    financing activities                            22,041         93,191 
-----  --------------------------------------  ----------------  ------------- 
 
 4.     Net increase / (decrease) 
         in cash and cash equivalents 
         for the period 
        Cash and cash equivalents 
 4.1     at beginning of period                          36,206         19,304 
        Net cash from / (used in) 
         operating activities (item 
 4.2     1.9 above)                                     (5,580)       (42,391) 
        Net cash from / (used in) 
         investing activities (item 
 4.3     2.6 above)                                    (35,289)       (52,436) 
        Net cash from / (used in) 
         financing activities (item 
 4.4     3.10 above)                                     22,041         93,191 
        Effect of movement in exchange 
 4.5     rates on cash held                                (68)          (358) 
                                               ----------------  ------------- 
        Cash and cash equivalents 
 4.6     at end of period                                17,310         17,310 
 
 
 
 5.    Reconciliation of cash and           Current quarter   Previous quarter 
        cash equivalents                         $A'000            $A'000 
        at the end of the quarter 
        (as shown in the consolidated 
        statement of cash flows) to 
        the related items in the accounts 
 5.1   Bank balances                                 17,310             36,206 
 5.2   Call deposits                                      -                  - 
 5.3   Bank overdrafts                                    -                  - 
 5.4   Other (provide details)                            -                  - 
                                           ----------------  ----------------- 
       Cash and cash equivalents 
        at end of quarter (should 
 5.5    equal item 4.6 above)                        17,310             36,206 
----  -----------------------------------  ----------------  ----------------- 
 
 
 6.      Payments to related parties of the entity       Current quarter 
          and their associates                                $A'000 
         Aggregate amount of payments to related 
          parties and their associates included in 
 6.1      item 1                                                    (114) 
                                                        ----------------- 
 6.2     Aggregate amount of payments to related                        - 
          parties and their associates included in 
          item 2 
                                                        ----------------- 
 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly 
  activity report must include a description of, and an explanation 
  for, such payments 
------------------------------------------------------------------------- 
 
 
 7.    Financing facilities                 Total facility      Amount drawn 
        Note: the term "facility'          amount at quarter    at quarter end 
        includes all forms of financing           end               $A'000 
        arrangements available to               $A'000 
        the entity. 
        Add notes as necessary for 
        an understanding of the sources 
        of finance available to the 
        entity. 
 7.1   Loan facilities                                72,784            72,784 
                                         -------------------  ---------------- 
 7.2   Credit standby arrangements                         -                 - 
                                         -------------------  ---------------- 
 7.3   Other (please specify)                              -                 - 
                                         -------------------  ---------------- 
 7.4   Total financing facilities                     72,784            72,784 
                                         -------------------  ---------------- 
 
 7.5   Unused financing facilities available at                              - 
        quarter end 
                                                              ---------------- 
 7.6   Include in the box below a description of each facility 
        above, including the lender, interest rate, maturity date 
        and whether it is secured or unsecured. If any additional 
        financing facilities have been entered into or are proposed 
        to be entered into after quarter end, include a note providing 
        details of those facilities as well. 
----  ------------------------------------------------------------------------ 
  The Company has mandated Taurus Funds Management (as manager 
   of the Taurus Mining Finance Fund L.P., Taurus Mining Finance 
   Annex Fund L.P. and Taurus Mining Finance Fund No. 2 L.P.) 
   to provide up to US$150m project financing for the Lake Way 
   Project. 
   The Stage 1 Facility was extended from US$30 million to US$45 
   million as announced to the market on 6 December 2020 and continues 
   to be drawn down. The facility is secured and interest is payable 
   at 9.75% pa. 
   The Project Development Facility (PDF) for up to US$150m (A$214m) 
   will be used to refinancing the Stage 1 Facility and for project 
   development and working capital associated with the development 
   of the Lake Way Project. Draw down of the PDF is subject to 
   a number of Conditions Precedent, The PDF will be secured and 
   interest will be payable at 9.00% pa. 
   As the loan is denominated in USD, the facility amount and 
   amount drawn down has been converted at an FX rate of $0.6175 
   USD/AUD, being the FX cross rate at 31 March 2020. 
 
 
 8.    Estimated cash available for future operating                $A'000 
        activities 
       Net cash from / (used in) operating activities 
 8.1    (Item 1.9)                                                  (5,580) 
 8.2   Capitalised exploration & evaluation (Item                         - 
        2.1(d)) 
 8.3   Total relevant outgoings (Item 8.1 + Item                    (5,580) 
        8.2) 
 8.4   Cash and cash equivalents at quarter end                      17,310 
        (Item 4.6) 
 8.5   Unused finance facilities available at quarter                     - 
        end (Item 7.5) 
 8.6   Total available funding (Item 8.4 + Item                      17,310 
        8.5) 
       Estimated quarters of funding available 
 8.7    (Item 8.6 divided by Item 8.3)                                  3.1 
----  ---------------------------------------------------------- 
 8.8   If Item 8.7 is less than 2 quarters, please provide answers 
        to the following questions: 
       1. Does the entity expect that it will continue to have 
        the current level of net operating cash flows for the 
        time being and, if not, why not? 
      --------------------------------------------------------------------- 
       Answer: 
        Not applicable. The Company notes however that it expects 
        to have similar levels of total net operating and investing 
        cash flows for the current quarter. 
      --------------------------------------------------------------------- 
       2. Has the entity taken any steps, or does it propose 
        to take any steps, to raise further cash to fund its operations 
        and, if so, what are those steps and how likely does it 
        believe that they will be successful? 
      --------------------------------------------------------------------- 
       Answer: 
        Not applicable. The Company notes however that further 
        to the response above and as detailed in the attached 
        March 2020 Quarterly Activities Report, the Company has 
        raised $20m in April 2020 from existing and new Institutional 
        investors to enable the Company to continue to deliver 
        the Lake Way Project to schedule. In addition, the Company 
        is working closely with Taurus to complete the PDF documentation, 
        derisk the Project and satisfy the conditions precedent 
        to the PDF (refer 7.6 above) in the near future. The Company 
        is also pursuing complementary funding options to ensure 
        that it is fully funded to complete the Project in accordance 
        with the Project schedule. 
      --------------------------------------------------------------------- 
       3. Does the entity expect to be able to continue its operations 
        and to meet its business objectives and, if so, on what 
        basis? 
      --------------------------------------------------------------------- 
       Answer: 
        Not applicable. Further to the responses above, the Company 
        notes however that it has a reasonable expectation that 
        it will complete project funding in the near future. The 
        Company has an existing mandate with Taurus to provide 
        up to US$150m in staged project financing (refer 7.6 above). 
        Negotiations with Taurus on the PDF have entered the final 
        stage, satisfaction of conditions precedent will shortly 
        follow allowing completion of the Project in accordance 
        with the Project schedule. As evidenced by the recent 
        $20m equity raising, Company has a strong institutional 
        shareholder base and support for the Project remains strong. 
        The Company actively managing its cash and commitments 
        to ensure that it can continue its operations and to meet 
        its business objectives of constructing the Lake Way Project. 
      --------------------------------------------------------------------- 
 

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

   2        This statement gives a true and fair view of the matters disclosed. 
   Date:                            30 April 2020 

By the Board

Authorised by: ...................................................................................

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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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