Argonaut as Joint Lead Manager has been successful in raising A$8.9 million for Salt Lake Potash Ltd (ASX: SO4) (“SO4”) to institutional and sophisticated investors both in Australia and overseas at an issue price of A$0.32 per share, together with Baillieu Holst Limited.
Proceeds from the placement will fund acceleration of the Company’s planned development initiatives at its flagship Lake Wells Sulphate of Potash (SOP) Project including
- Further drilling to improve the geological and hydrological model at Lake Wells, including pump testing of 3 aquifer units and measuring the hydraulic properties (flow rates and transmissivity) of the aquifers hosting the brine. A drill rig has recently mobilised to Lake Wells;
- Field evaporation trials on bulk brine samples supplied from the current drilling campaign to define the evaporation patterns, estimate the salting points of mixed salts and predict the conditions for production of SOP. Laboratory evaporation trials are currently underway to assist in designing the parameters of the field evaporation trials;
- A Scoping Study on the Lake Wells Project incorporating the recently upgraded Mineral Resource;
- Ongoing heritage, environmental, marketing and other studies to form part of the Lake Wells Scoping Study;
- Reconnaissance sampling and permitting at Lake Irwin (Exploration License: E37/1233 now granted), which is situated 180kms to the south-west of Lake Wells, as well as other projects owned by Salt Lake Potash;
- Normal working capital including staffing and corporate costs.
Commenting on the Placement, SO4’s Director, Matt Syme, said “This is an excellent outcome for the Company and the strong support received both domestically and from overseas underlines the quality of the Lake Wells Project and the exciting potential of salt lake SOP production in Australia. Once completed, the funds raised will allow SO4 to continue its aggressive exploration program, testwork activities and to complete important technical and commercial studies.”
Argonaut is delighted to provide continuing support to SO4 and looks forward to the relationship continuing.
Additional information regarding SO4 and the Capital Raising can be found on the company’s website at www.saltlakepotash.com.au.