Salt Lake Potash Ltd (ASX:SO4) has received strong demand from strategic and institutional overseas investors, further to the $5.2 million placement to Australian investors announced on 23 March 2016.
The company will now raise circa $8.4 million at $0.32.
Proceeds from the placement will be used to accelerate the company’s planned development initiatives at its flagship Lake Wells Sulphate of Potash (SOP) Project in Western Australia.
Further drilling work will be done to improve the geological and hydrological model at Lake Wells, including pump testing of 3 aquifer units and measuring the hydraulic properties of the aquifers. A drill rig was recently mobilised to Lake Wells.
Field evaporation trials will be conducted on bulk brine samples supplied from the current drilling campaign to define the evaporation patterns of mixed salts, to predict the production conditions of SOP.
Salt Lake Potash is also planning reconnaissance sampling and permitting at Lake Irwin, which is situated 180 kilometres to the south-west of Lake Wells, as well as other projects owned by Salt Lake Potash.
The share placement is expected to be completed progressively over the next week as proceeds are received.
Salt Lake Potash shares have been on a roll in 2016, increasing more than 50% since January 2016.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.