News: SO4 Salt Lake Potash Receives Commitments To Raise A$15 Mln, page-16

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sevo

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10/07/20

08:47

Post #: 45768202
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Originally posted by commodityscrenr: ↑

My opinion on this funding is the following: Middlemas is Chairman of both companies and as sevo said, Equitorial has had approximately A$40 million lying around. It appears that Middlemas has thus secured SO4 capital in the short term so that the high pace of project development can be maintained. This has also been confirmed by today's announcement. Given that the final funding is just around the corner I think the deal for SO4 is very good, but not so good for Equatorial. Since the conversion into shares will probably take place in one year, the share price will already have risen strongly by then, assuming that SO4’s production start remains on schedule. This means less dilution for SO4 and the shareholders, but EQX will then enter at a significantly higher share price. And a 10% discount on the share price is not very much. But that's another story. Let's hope that the money will last until the debt funding is closed. There seems to be enough support, especially from Middlemas who has a lot of shares.
In case you are interested in the SOP fertilizer sector, I have compared Salt Lake Potash in detail on my private blog with other companies that are also active in this business. If you are interested you can find the free report under this link: https://commodity-screener.com/investments-in-future-low-cost-potash-fertilizer-producers/

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I didn’t see that Middlemas was also chairman of EQX.
Will the next tranche of cash come from the piggy bank of another remotely related company?

SO4 Price at posting: 57.5¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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News: SO4 Salt Lake Potash Receives Commitments To Raise A$15 Mln, page-16

Top Stories

White Cliff wraps up Canadian fieldwork programs – 'visually confirming' a slew of minerals

Lincoln repositions Kookaburra for low-cost graphite delivery

TechGen Metals kicks off airborne geophys survey at Sally Downs copper play – a first for the permit

Magmatic defines 6km copper trend with grades of up to 6.5% at NSW prospect

Strike hands $48.5M contract to Clarke Energy to produce 20x 4.5MW gas engines for Sth Erregulla

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