Salt Lake Potash updates on progress at Lake Way project

Salt Lake Potash Limited (LON:SO4) (ASX:SO4) (OTCMKTS:WHELF) (FRA:W1D) has updated investors in a quarterly report for the period to March 31 as it focused on completing the development of the Lake Way sulphate of potash (SOP) project in Western Australia.

The company said commissioning of a process plant commenced in March with the introduction of first harvest salts to the front end of the plant. At the end of the quarter, it said the plant was 97% complete on an earned value basis, including engineering which is 99% complete, procurement 99% complete and construction 90% complete. The firm added that the first SOP product is expected during the June quarter.

READ: Salt Lake Potash receives final environmental approval covering full-scale operations at Lake Way Project

Meanwhile, the group said following the end of the period the five two-megawatt (MW) units in a gas power plant were successfully commissioned and that all major non-process infrastructure items have now been completed and are ready to support full-scale operations.

Salt Lake also said the Sequoia Economic Infrastructure Income Fund and the Commonwealth Bank of Australia have invested US$39mln and US$25mln respectively into its US$138mln senior debt facility, complementing existing investments led and arranged by Taurus Mining Finance Fund No. 2 L.P and the Australian Government’s Clean Energy Finance Corporation.

The firm has also unveiled a suite of SOP products designed to spread exposure across various SOP sub-markets and maximise premiums and revenue. SOP Precision will be sold into the premium-priced fertigation market while SOP Prime will target the direct application and compound nitrogen, phosphorus, and potassium (NPK) markets and SOP Premium will be a granular product, targeting basal applications and bulk NPK blending.

Salt Lake added that during the quarter it has successfully proved halite harvesting methodology, harvesting 93,000 cubic meters of halite salts from cells in Train 1 with pond cells maintained online throughout the harvesting.

The group said it had also conducted a share purchase plan as part of an equity capital raise in December which was upsized to A$8mln from A$5mln due to strong demand.

“Significant progress was made on Process Plant construction as well as financing and product positioning during the March quarter, setting the company up for first SOP sales in the June quarter. Our focus is now on successful commissioning and ramp-up of the process plant as we look to move into positive cash flow from our first operating SOP asset”, Salt Lake’s chief executive Tony Swiericzuk said in a statement.

Story by ProactiveInvestors