TIDMSO4
RNS Number : 8468D
Salt Lake Potash Limited
02 May 2017
2 May 2017 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
Australian Capital Raising takes total Placement to GBP10.25 Million for Further Development
of Goldfields Salt Lakes Project
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Further to the announcements on 27 and 28 April 2017, Salt Lake
Potash Limited (the Company or SO4) is pleased to announce that it
has now received commitments from institutional and sophisticated
investors in the United Kingdom and Australia to subscribe for a
total of 41,000,000 new ordinary shares of no par value in the
capital of the Company (Ordinary Shares), to raise gross proceeds
of GBP10.25 million (the Placement).
The Placement includes 30,000,000 new Ordinary Shares in the
Company that were placed by Cenkos at a price of 25 pence
(approximately A$0.43) per Ordinary Share to raise gross proceeds
of GBP7.5 million, as announced on 27 April 2017 (the UK Placement
Shares).
A further 11,000,000 new Ordinary Shares have now been placed in
Australia at a price of A$0.43 per Ordinary Share to raise
additional gross proceeds of GBP2.75 million (A$4.73 million) (the
Australian Placement Shares). Argonaut Securities Pty Limited acted
as Manager to most of the Placement in Australia. Of the Australian
Placement Shares, the issue and allotment of 10,300,000 Ordinary
Shares is conditional upon receiving shareholder approval at a
general meeting, to be convened in due course.
Proceeds from the Placement will be used for the planning and
initial construction costs of a Pilot Plant at the Goldfields Salt
Lakes Project, as well as ongoing resource investigation, process
testwork, engineering and transport studies and working
capital.
Commenting on the Placement, SO4's CEO, Matt Syme, said "We are
very pleased to have successfully put in place the next stage of
funding for our exciting sulphate of potash projects in Australia,
where we are working very hard to become the first producer in a
sector with outstanding potential. The excellent support we have
received from our shareholders and advisers in the UK and Australia
is a great help in our pursuit of that goal and we look forward to
continued success together."
The Placement will be completed in two tranches as follows:
i. Firm Placement Shares: 30,700,000 Ordinary Shares (comprising
the 30,000,000 UK Placement Shares and 700,000 of the Australian
Placement Shares) will be issued under the Company's existing
Listing Rule 7.1 (17,317,241 Ordinary Shares) and Listing Rule 7.1A
(13,382,759 Ordinary Shares) authorities. Following the issue of
these Ordinary Shares, the Company will have a 2,576,898 remaining
issue capacity under ASX Listing Rule 7.1 and no remaining issue
capacity under ASX Listing Rule 7.1A.
ii. Conditional Placement Shares: The issue of the residual
balance of 10,300,000 Australian Placement Shares is conditional
upon receiving shareholder approval at a general meeting of
shareholders. The Company anticipates that these Conditional
Placement Shares will be issued on or around Friday 16 June 2017,
subject to receiving shareholder approval. A notice of general
meeting will be sent to shareholders shortly.
Settlement and dealings
The UK and Australian Placement Shares will rank pari passu with
the Company's existing Ordinary Shares. As announced on 27 April
2017, application has been made for admission of the 30,000,000 UK
Placement Shares to trading on ASX and on the AIM Market of the
London Stock Exchange (AIM), (First Admission). First Admission to
AIM is expected to become effective at 8.00 a.m. on 4 May 2017.
Application has also been made for the admission of 700,000 of
the Australian Placement Shares, representing the balance of the
Firm Placement Shares, to trading on ASX and AIM (Second
Admission). Second Admission to AIM is expected to become effective
at 8.00 a.m. on or around 5 May 2017.
Following First Admission but before Second Admission, the
Company's total issued and voting share capital will comprise
164,007,596 Ordinary Shares. The Company does not hold any shares
in treasury. This figure of 164,007,596 Ordinary Shares may be used
by the Company's shareholders as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
Following Second Admission, the Company's total issued and
voting share capital will comprise 164,707,596 Ordinary Shares.
This figure of 164,707,596 Ordinary Shares may be used by the
Company's shareholders as the denominator for the calculations by
which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
The voluntary suspension of trading of the Company's shares on
ASX was lifted prior to the opening of trade on 2 May 2017,
following an announcement to the market regarding the above.
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 11.4% and the
total dilution to existing shareholders is 18.6%. 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 13,382,759 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.
For further information please visit www.saltlakepotash.com.au
or contact:
Matthew Syme/Sam Cordin Salt Lake Potash Limited Tel: +61 8 9322 6322
Colin Aaronson/Richard Tonthat/Daniel Bush Grant Thornton UK LLP Tel: +44 (0)207 383 5100
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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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