Kalium Lakes Limited (Kalium Lakes) has received a credit approved offer from Westpac Banking Corporation (Westpac) for a AUS$15 million working capital facility and a hedging facility.
Together, these facilities will support prudent capital and risk management during construction, commissioning and operations of the Beyondie SOP Project. The working capital facility is an 18 month revolving facility with a AUS$15 million limit that becomes available from Practical Completion of the Beyondie SOP Project. The hedging facility will be used to hedge risk in accordance with the hedging policy of the Beyondie SOP Project. Both facilities are senior secured.
The working capital and hedging facilities are both subject to the execution of formal documentation and other customary conditions precedent. These facilities form the final component of the funding package for the Beyondie SOP Project, which includes the previously announced credit-approved offers for AUS$102 million of funding from KfW IPEX-Bank (see ASX announcement 2 July 2019) and AUS$74 million of funding from the Northern Australia Infrastructure Facility (NAIF) (see ASX announcement 20 February 2019).
The facilities are in addition to the recently completed AUS$72 million capital raise and the AUS$15.5 million cash on hand as at 30 June 2019. Kalium Lakes’ Managing Director, Brett Hazelden, commented: “We are pleased to have the support of Westpac in providing these facilities. We welcome the relationship with Westpac, one of the leading banks in agriculture and mining.” The working capital and hedging facilities were obtained with the assistance of BurnVoir Corporate Finance, Kalium Lakes’ financial adviser.
Read the article online at: https://www.globalminingreview.com/finance-business/30082019/westpac-to-provide-working-capital-and-hedging-facilities-to-kalium-lakes/