Salt Lake Potash Ltd. said Aug. 5 that it secured US$180 million in debt financing to advance its Lake Way potash project in Western Australia.
Early construction works at Lake Way will be paid off through a stage-one funding of US$30 million obtained by the Australia-listed explorer. The first drawdown of the facility is expected to be available in the third quarter.
Meanwhile, the project development financing was acquired through a further US$150 million stage-two funding from Taurus Funds Management.
The staged financing deal allows for Salt Lake to pay for the A$10 million tenement acquisition from Blackham Resources Ltd. and advance a bankable feasibility study, which is due for delivery in the September quarter.
A scoping study for a commercial scale sulfate of potash development at Lake Way outlined posttax net present value, discounted at 8%, of A$381 million and a 27% internal rate of return.