AFR
Equity markets have been extremely accommodating for junior resources stocks over the past year with pre-revenue exploration companies raising record amounts of cash in each of the past three consecutive quarters.In that market context, investors spoken to over the past week believed Salt Lake Potash would most likely be given another chance to get its project working.
Lenders such as Taurus Funds Management have security over the assets at Lake Way and the $US138 million debt arranged by Taurus carries interest rates of 9 per cent.
Interest is charged at 12 per cent on a second $18 million loan with Sequoia Economic Infrastructure Fund.
Salt Lake Potash is due to start repaying the Taurus syndicated loan on March 31, while repayments on the Sequoia loan commence on April 11.
If those repayment schedules are not revised under the equity raising, the company faces a relatively urgent delivery schedule; Salt Lake Potash said on Friday it expects first potash production in March.
