GCISalt Lake Potash Raises $13 Million to Continue Progress on Sulphate of Potash Project
(SO4) has raised $13mln through a share placement to “both existing and new institutional and sophisticated investors in Australia and overseas.” Shares were issued at a price of 42 cents each.
The company reports a strong demand for the placement among investors. Such investor support is a clear mark of faith in both SO4’s new CEO, Tony Swiericzuk, and the potential for value creation of the group’s sulphate of potash enterprise, the Goldfields Salt Lakes Project.
SO4’s directors and senior management subscribed for a total of 2.4mln share in the placement, including 950,000 shares by Swiericzuk and 750,000 shares by chairman Ian Middlemas.
However, the cornerstone investor for the placement was a significant investment fund, a detail those interested in SO4 are sure to take note of.
With the proceeds of the placement, the company now has the appropriate funds for the construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as on-lake infrastructure and exploration and feasibility studies.
In his comments, Swiericzuk relayed the company’s satisfaction with the news; “We are very pleased to have received such strong support… from shareholders to fund the construction of the initial on-lake infrastructure at Lake Way. These activities are on the critical path to enabling SO4 to become the first Australian commercial producer of SOP in a global sector with outstanding potential.”
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