IGO suspends annual dividends from Tianqi JV amid market downturn
The JV experienced a build in lithium hydroxide inventory at Kwinana over recent months.
Australian potash producer Kalium Lakes (ASX: KLL) announced on Thursday the successful completion of a A$50 million ($37m) capital raise through a two-tranche placement of new fully paid ordinary shares. A total of 278 million shares were issued at A$0.18 per share.
According to Kalium, which is looking to expand its Beyondie sulphate of potash (SoP) project in Western Australia, the offer was significantly oversubscribed, receiving strong demand from existing shareholders as well as new institutional investors.
The first tranche consisted of approximately 209.8 million shares to raise an initial A$37.8 million under the company’s existing share placement capacity. A second tranche of 68 million shares, to raise a further A$12.2 million, will be subject to shareholder approval at Kalium’s annual general meeting, scheduled for November.
In addition to the capital raise, Kalium will also conduct a share purchase plan (SPP) to raise up to A$10 million, allowing existing shareholders to subscribe for up to A$30,000 worth of additional shares in the company.
Kalium’s largest shareholder, Greenstone Resources, has committed to take up its rights to retain a holding of 19.8% post the offer and SPP under its anti-dilution right.
The funds raised will be used by Kalium on a A$43.5 million expansion of the Beyondie project from its current 90 ktpa capacity to 120 ktpa, which is targeted to be achieved by the fourth quarter of 2022.
The expansion followed Beyondie’s first SoP production earlier this month, becoming Australia’s only SoP producer. The project has an initial mine life of between 30-50 years.
Shares of Kalium Lakes were down by 11.3% on the ASX at market close Thursday. The company’s market capitalization stands at A$163.6 million.
