Funding underway for Beyondie feasibility

POTASH contender Kalium Lakes wants A$16 million in new funding for a bankable feasibility study at its Beyondie sulphate of potash project in the Pilbara region of Western Australia.
Funding underway for Beyondie feasibility Funding underway for Beyondie feasibility Funding underway for Beyondie feasibility Funding underway for Beyondie feasibility Funding underway for Beyondie feasibility

Brine bore testing at Kalium's Beyondie project, WA.

Michael Quinn

The company aims to place $14 million with institutions at a price of 42c each – a 13.4% discount to the last trading price of Kalium shares – and is to undertake a $2 million share purchase plan.

Brent Smoothy, the company’s biggest shareholder, “has committed to bid into the bookbuild for $2 million of the placement”.

Smoothy holds 39% of the company, with the $2 million being bid representing about 14% of the $14 million sought.

Previous assessments have Beyondie initially being a 75,000 tonne per annum operation costing $124 million to develop.

Payback is put at about five years based on a sales price of US$500 per tonne and an operating cost of about A$250 per tonne.

Prior to the fund raising being announced, Kalium had an enterprise value of about $62 million.