Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) (FRA:W1D) continues to march towards first sulphate of potash (SOP) production from Lake Way Project in Western Australia in the near term by concluding the debt financing process.
The company has received debt funds from the final US$33 million tranche of its US$138 million Senior Debt Facility and has also received funds from its recent A$28 million placement.
Guarantee Facility executed
In addition, Salt Lake Potash has executed the A$18 million Guarantee Facility with Sequoia Economic Infrastructure Fund (SEQI), which allows the release of A$18 million of equity back into the project.
These funds will be used for general operating expenses during the ramp-up of the Lake Way SOP Project.
CEO and managing director Tony Swiericzuk said: “We are pleased to have concluded the debt financing process and would like to thank all our financial stakeholders for their support in funding the Lake Way project.
“We now look forward to delivering the project and ramping up SOP production over the next 9-12 months.”
Senior Debt Facility
Following completion of the placement, the company has satisfied all remaining conditions precedent to draw the final tranche of the Senior Debt Facility.
As a result, the final US$33 million tranche has been drawn, with US$11 million escrowed for early repayment in June 2022.
The company remains on track for first SOP production this month and first revenue from the project.
Commissioning of the process plant at Lake Way commenced in March with the introduction of harvest salts to the front end of the plant.
By May 24, 26 of the 34 process units in the plant had commenced commissioning with project construction largely complete.