Salt Lake Potash makes first drawdown from syndicated facility

22nd Dec 2020 09:05

(Sharecast News) - Salt Lake Potash has satisfied all remaining conditions under its syndicated facility agreement to achieve financial close, it announced on Tuesday, and had received debt funds from the first drawdown of $105m (£78.16m).
The AIM-traded firm had announced on 5 August that it had executed a $138m syndicated facility agreement with Taurus Mining Finance Fund No.2 and the Clean Energy Finance Corporation.

Following completion of the first tranche of the placement to raise AUD 50m (£28.12m)( before costs on 18 December, the company said it had satisfied all remaining conditions under the agreement to achieve financial close.

Funds representing the first $105m tranche had been received, the board confirmed, enabling repayment of the $45m bridge facility, and to further the completion of project construction.

"This is a substantial milestone in the development of the company and the Lake Way Project," said chief executive officer Tony Swiericzuk.

"Drawdown has facilitated the repayment of the bridge facility which enabled Salt Lake Potash to progress the project substantially since August 2019.

"In combination with the recent placement, these funds will ensure the company is well-financed to deliver the Lake Way Project."

At 0901 GMT, shares in Salt Lake Potash were flat in London, at 21.5p.