Ann: BSOPP Feasibility Study Complete - New 120ktpa Base Case, page-200

There is no guarantee that a cap raise will happen and dilute shareholders (could be wrong).
I'm optimistic given the previous cap raise and the bitter attitude among shareholders previously, that they will try other means first, I think a cap raise would be the last thing they would want to do (not out of the question). Perhaps for a few it's all too real with getting burnt before!

2 important sections in the announcement for me under Funding:

Kalium Lakes is in the process of exploring equity and debt funding options.The Company is working with its senior lenders to restructure its existing debt arrangements and is in the process of negotiating the provision of an additional liquidity facility of A$20m (A$10m to be provided by both NAIF and KfW respectively). The debt restructuring includes a deferral of principal repayments10 The 100ktpa Operating licence will also include approval to construct the additional bores and ponds that will support the increased SOP production target at 120ktpawww.kaliumlakes.com.au Page 10 of 61for the first two years of production and a two-year extension to the maturity of the KLP11 loans and, combined with the expansion to the 120ktpa SOP production rate, will enable the Company to meet its debt service obligations.

In addition to the above, the Company has signed an amendment to its offtake agreement with K+S for the entire 120ktpa production target, which includes improved payment terms which provide working capital support for the first three years of production.

Investors should note that there is no certainty that Kalium Lakes will be able to secure funding when needed (nor any certainty as to the form such capital funding may take, such as equity, debt, hybrid or other capital raising). It is also possible that such funding may only be available on terms that dilute or otherwise affect the value of Kalium Lakes’ shares.


For me it's a hold and top up if possible. There is a future for a company and market like this. They still have 100% phase 1 off take agreement in place with K & S. Long term it's a gower for me.