The AU$72 million Kalium hopes to obtain will be used to construct the project and needed infrastructure, and will support the company through first production.
The AU$72 million Kalium hopes to obtain will be used to construct the project and needed infrastructure, and will support the company until first production.
Initial output from Beyondie is slated for sometime in 2020 if the fundraising is successful.
“After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately commence development of the Beyondie project so that Kalium Lakes becomes Australia’s first SOP producer in CY2020,” Managing Director Brett Hazelden stated.
The future potash producer has been working to advance Beyondie since receiving environmental approval for the Western Australian project from the Commonwealth Department of the Environment and Energy in late January.
In addition to these efforts, Kalium has also awarded four key construction contracts totaling AU$60 million for the construction and development of the SOP project.
“A huge amount of effort has gone into getting this project to where it is today and I am incredibly proud of the work undertaken to date by the Kalium Lakes team, bearing in mind that we now move into the critical development phase, so that we can begin production and deliver substantial value from this world class, low cost and high margin SOP asset for our shareholders,” Hazelden added.
Beyondie’s ore reserves are estimated to total 5.14 million tonnes of SOP at 12,400 milligrams per liter of potassium sulfate. An initial mine life for the project has been pegged at 30 to 50 years.
Kalium plans for initial production tallies of 90 kilotonnes per annum (ktpa) of SOP, before ramping up to 180 ktpa of SOP for domestic and international sale.
Shares of the company, which trade on the ASX, were halted ahead of the Wednesday (July 24) fundraising announcement. Shares are expected to recommence trading on Friday (July 26).
At close of day on Tuesday (July 23), shares of Kalium sat flat at AU$0.68.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.