Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) substantial shareholder Lombard Odier Asset Management (Europe) Limited (LOAME) has increased its interest in the sulphate of potash (SOP) developer to 15.01%.
LOAME now holds more than 35 million shares in the company on the ASX after a series of purchases in May and June increased the interest from 11.55%.
The London-based investor has purchased 11.214 million shares purchased in five transactions with a total value of more than £3.334 million.
Shares at high levels
Shares are trading at A$0.76 after reaching a 12-month high of $A0.83 last Friday.
Salt Lake has this week completed a placement to strategic investors for gross proceeds of A$20.25 million.
Proceeds will be used to fund ongoing development of the Lake Way SOP Project in Western Australia.
This work includes development of on-lake infrastructure, payment of deposits on certain process plant long-lead items, completion of a bankable feasibility study (BFS) and general working capital.
Having completed a scoping study for a commercial scale 200,000 tonnes per annum SOP development, Salt Lake is focused on completing the BFS in quarter-three 2019.
Salt Lake Potash intends for Lake Way to be the first salt lake brine SOP production operation in Australia.
The scoping study was based on a mineral resource estimate amounting to 8.2 million tonnes of SOP calculated using drainable porosity and 73 million tonnes using total porosity.
Results indicate Lake Way would generate strong economic returns due to its low capital intensity bottom quartile operating costs and sustainable mining life.
Advanced discussions for development funding with a debt provider are continuing and the company is moving into front end engineering design, utilising experience gained from construction of the initial evaporation ponds.