Salt Lake Potash begs for one last chance
Peter KerResources reporterOct 1, 2021 – 2.39pmTroubled commodities aspirant Salt Lake Potash now believes it will start generating revenue just weeks before it is due to start repaying debt, giving it a strong incentive to end its habit of over-promising and under-delivering.
Salt Lake Potash was poised to be the first of a fleet of new Australian potash producers when construction of its processing plant at Western Australia’s Lake Way was completed in June, but sustainable production was never achieved after disappointing geological and processing results.
The potassium grades extracted and evaporated from Lake Way were lower than hoped and a floatation circuit within the processing plant also delivered underwhelming results.
The company needs more money to fix its problems, and big investors were approached about an equity raising in recent days, which the company hopes to complete within the next eight weeks.
Assuming it can raise the required funds, Salt Lake Potash said it hoped to be producing potash before March 31.
The equity raising shapes as a sliding doors’ moment for Salt Lake Potash’s battle weary investors, after the company conducted six separate equity capital raisings in the year to June.
