Salt Lake Potash directors show faith in company through A$8 million placement participation

Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) directors have demonstrated their confidence in the company’s potash strategy by participating in the company’s recent A$8 million share purchase plan (SPP).

The initial A$5 million SPP target was increased following strong demand from existing retail shareholders.

Director participation was approved by shareholders at a general meeting on January 22.

Director purchases

Chairman Ian Middlemas purchased 3 million shares on that date with a total value of A$1.2 million in an indirect interest taking his total stake in that interest to 20 million shares.

Chief executive officer Tony Swiericzuk acquired 500,000 shares on February 11 in a direct interest with a value of A$200,000, increasing the number of securities held to more than 5.2 million.

Non-executive director Philip Montgomery acquired 1.25 million shares for a total of A$500,000 in an indirect interest representing his first purchase of fully paid ordinary shares.

Matthew Bungey, a non-executive director, acquired 150,000 shares valued at A$60,000, increasing the number of securities held in an indirect interest to more than 1.9 million with almost 107,000 also held in a direct interest.

Non-executive director Peter Thomas purchased 125,000 shares valued at A$50,000, increasing his stake in a direct interest to 245,000 shares.

SPP oversubscribed

The SPP was heavily oversubscribed with applications received for A$10 million at the issue price of A$0.40 per share and this necessitated a scale-back of valid applications in proportion to the total dollar value of valid applications.

On a pro-rata basis, all eligible shareholders, who submitted valid applications have been allocated approximately 83% of their application amount.

A total of 20 million new fully paid ordinary shares have been issued under the SPP, representing approximately 2.7% of SO4’s ordinary shares on issue post completion of Tranche 2 of the placement.

Of the SPP, Swiericzuk said: “On behalf of the company, I would like to thank all of our shareholders for their ongoing support as evidenced by the strong demand for the SPP.

“The funds raised through the placement and SPP, have enabled the company to achieve financial close on the US$138 million Taurus/CEFC debt facility and draw the initial tranche of US$105 million and to finalise development of the Lake Way Project.”

Story by ProactiveInvestors