The project is 40% complete according to the company. Greenstone Resources has committed approximately AUS$12 million to the placement, and to sub-underwrite up to approximately AUS$2 million of any retail shortfall. The company's Board and senior management have committed to take up to AUS$5.8 million to the placement.
Kalium Lakes Managing Director, Brett Hazelden, commented: “Commencing a new Australian industry and being a first mover in SOP has presented some development challenges resulting in a capital cost increase for the BSOPP. Despite the capital cost overrun the company and the project still remains a financially attractive, long life, low operating cost and high margin business once it commences steady state operations.
The overall project is now 40% complete, with an offtake agreement in place, comprehensive suite of constructions approvals, highly attractive debt funding tenor and interest rates, and in a commodity that currently requires Australia to import 100% of its requirements.
Importantly our revised capital budget has been verified by independent engineering specialists who have reviewed the project, and we are confident that the offer will fund us through to completion of construction of the BSOPP and through to first production.
We would like to thank our lenders, contractors and shareholders who have been supportive and continue to be supportive of the company and the project.”
Read the article online at: https://www.worldfertilizer.com/project-news/22052020/kalium-lakes-raising-capital-for-beyondie-sop-project/