Middlemas' Salt Lake claims to be in 'advanced' debt discussions

SALT Lake Potash says it’s in “advanced discussions” with a debt provider as scoping work showed a 200,000 tonne per annum sulphate of potash operation near Wiluna in Western Australia could cost A$237 million to build and be capable of generating average annual after tax cashflow of $64 million.
Middlemas' Salt Lake claims to be in 'advanced' debt discussions Middlemas' Salt Lake claims to be in 'advanced' debt discussions Middlemas' Salt Lake claims to be in 'advanced' debt discussions Middlemas' Salt Lake claims to be in 'advanced' debt discussions Middlemas' Salt Lake claims to be in 'advanced' debt discussions

Salt Lake is being strongly promoted

With a bankable feasibility study targeted for completion next quarter, Salt Lake claimed the potential Lake Way operation will have the lowest operating cost of any SOP project globally.

Financial metrics estimated included a net present value of $381 million (post-tax), and an internal rate of return of 27%.

Salt Lake is one of a handful of ASX contenders keen on developing operations in and around WA.

It has arguably the highest profile with resource sector entrepreneur Ian Middlemas backing the play and former UBS analyst Jo Battershill promoting the venture in London.

The seemingly well-connected company raised $20 million earlier this month in new equity, with participants in that raising claimed to have had big involvement in former base metal miner LionOre Mining International and last decade's Tanzanian uranium success Mantra - both of which were taken over.

The raising priced new shares at 54c with the stock trading this week at 69c.

At that price Salt Lake is capitalised at $143 million.