TIDMSO4
RNS Number : 8501G
Salt Lake Potash Limited
09 November 2018
9 November 2018 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
A$13.0 Million Placement to Institutional and Sophisticated Investors to Fund Project Development
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Salt Lake Potash Limited (the Company or Salt Lake) is pleased
to announce that it has received strong commitments from both
existing and new institutional and sophisticated investors in
Australia and overseas to subscribe for 31.0 million new ordinary
shares of the Company (Ordinary Shares), to raise gross proceeds of
$13,000,000 (Placement). There was very strong demand for the
Placement, an endorsement of the recent appointment of Tony
Swiericzuk as CEO and also of the Company's world class Sulphate of
Potash project.
Proceeds from the Placement will be used to fund construction of
the Williamson Ponds and dewatering of the Williamson Pit, as well
as ongoing development of on-lake infrastructure, exploration and
feasibility studies, and general working capital.
The cornerstone investor for the Placement is a significant
international investment fund. Directors and senior management
intend to subscribe for a total of 2.4 million shares in the
Placement, including 952,381 shares by the CEO, Mr Tony Swiericzuk,
and 750,000 shares by the Company's Chairman, Mr Ian Middlemas,
which will be issued subject to shareholder approval.
Commenting on the Placement, SO4's CEO, Tony Swiericzuk, said
"We are very pleased to have received such strong support from new
and existing 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. This strong support from investors endorses our view
that the Goldfields Salt Lakes Project has enormous potential for
value creation and we now look forward to rapidly delivering on
this potential for all shareholders and stakeholders."
Argonaut Securities Pty Limited and Canaccord Genuity
(Australia) Limited acted as Joint Lead Manager to the
Placement.
The issue price of A$0.42 represents a 13.4% discount to the
last closing price of $0.485 on ASX.
The Placement will be completed in two tranches as follows:
(a) 29,250,000 shares will be issued on 16 November 2018 under
Listing Rule 7.1 (11,745,041 shares) and Listing Rule 7.1A
(17,504,959 shares). Following the issue of these shares the
Company will have 7,612,398 remaining issue capacity under Listing
Rule 7.1 and no remaining issue capacity under Listing Rule
7.1A.
(b) 1,702,381 shares intended to be subscribed for by Directors
will be issued on or about Thursday 20 December 2018 subject to
shareholder approval. A notice of general meeting will be sent to
shareholders shortly.
Related Party transaction
The proposed participation in the Placement by Tony Swiericzuk,
and Ian Middlemas constitutes a related party transaction under
Rule 13 of the AIM Rules for Companies. The independent directors,
having consulted the Company's nominated adviser, Grant Thornton UK
LLP, consider that the terms of the transaction are fair and
reasonable insofar as the Company's shareholders are concerned.
Settlement and dealings
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") for 29,250,000 Ordinary Shares, pursuant to the
Placement, which rank pari passu with the Company's existing issued
Ordinary Shares, to be admitted to trading. Dealings on AIM are
expected to commence at 8:00am on or around 16 November 2018
("Admission").
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission, Salt
Lake will have 204,299,596 Ordinary Shares in issue with voting
rights attached. Salt Lake holds no shares in treasury. This figure
of 204,299,596 may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the ASX Listing Rules or the
DTRs.
Information required under ASX Listing Rule 3.10.5A:
(a) Dilution to existing shareholders as a result of the issue
under Listing Rule 7.1A is 9.1%, dilution to existing shareholders
as a result of the issue under Listing Rule 7.1 is 6.3% and the
total dilution to existing shareholders is 14.3%. Details regarding
the participation of existing and new shareholders is not able to
be determined yet and will be provided at completion;
(b) The Company will issue 17,504,959 shares under Listing Rule
7.1A because the Placement was considered to be a more efficient
mechanism for raising funds. The Placement did not expose the
Company to additional costs, a protracted process and market
volatility that may have been experienced with a pro-rata issue or
other type of issue in which existing ordinary shareholders would
have been eligible to participate;
(c) No underwriting arrangements are in place for the Placement under rule 7.1A; and
(d) A fee of up to 6% may be paid to the Brokers/Advisors in
connection with the Placement under rule 7.1A.
The voluntary halt of trading of the Company's shares on ASX was
lifted prior to the opening of trade on 9 November 2018, following
an announcement to the market regarding the above.
For further information please visit www.saltlakepotash.com.au
or contact:
Tony Swiericzuk/Clint McGhie Salt Lake Potash Limited Tel: +61 8 9322 6322
Jo Battershill Salt Lake Potash Limited Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat/Ben Roberts Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs Shore Capital (Joint broker) Tel: +44 (0) 20 7468 7967
Forward Looking Statements
This announcement may include forward-looking statements. These
forward-looking statements are based on Salt Lake Potash Limited's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Salt Lake
Potash Limited, which could cause actual results to differ
materially from such statements. Salt Lake Potash Limited makes no
undertaking to subsequently update or revise the forward-looking
statements made in this announcement, to reflect the circumstances
or events after the date of that announcement.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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