Salt Lake Potash raises £7m in placing for Goldfields project

Salt Lake Potash has raised £7m through a placing of 30m shares at 25p each, which will be put towards the planning and construction costs of the pilot plant it is proposing to build at its Goldfields Salt Lakes Project, as well as ongoing exploration and development costs.

Chief executive officer Matt Syme said: "We are very pleased to have successfully put in place the next stage of funding for our exciting Sulphate of Potash Projects in Australia, where we are working very hard to become the first producer in a sector with outstanding potential.

"The outstanding support we have received from our shareholders and advisers in London is a great help in our pursuit of that goal and we look forward to continued success together."

The Goldfields Project is intended to be the first salt-lake brine sulphate of potash production operation in Australia and the company has appointed Amec Foster Wheeler to prepare an analysis of the options for constructing the pilot plant as part of the pre-feasibility study on the full scale production model.

At 1543 BST, the shares were down 5.5% to 26p.