The Kalium Lakes Ltd (ASX: KLL) share price is edging higher in Friday morning trade. This comes after the mineral exploration company provided investors with an update on its capital raising efforts.
At the time of writing, Kalium Lakes shares are up 2.78% to 18.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is hovering 0.19% higher at 7,743.4 points.
What did Kalium Lakes announce?
In a statement to the ASX, Kalium Lakes advised it has opened up its share purchase plan (SPP) following a successful placement.
On 14 October, the company revealed that it had received overwhelming support to raise $50 million via a two-tranche placement. The firm took commitments came from its largest shareholder, Greenstone Resources, along with other institutional investors.
About 278 million shares will be issued at 18 cents per share. This represents a 22.2% discount on the last traded price of 22 cents before the announcement on 13 October.
Kalium Lakes decided to allow its remaining shareholders to participate in a $10 million SPP based on the same terms.
The company said eligible investors would be able to apply for up to a maximum amount of $30,000 worth of new shares.
The closing date for the SPP will fall on 11 November, and the results will be announced on 17 November.
Kalium Lakes will use the capital raised to fund the expansion of its Beyondie sulphate of potash (SOP) project.
Located in Western Australia, the project is on schedule to achieve its first output in September 2021. The company is targeting to deliver steady state production of up to 120 kilo-tonnes per annum.
In addition, the remaining monies will provide working capital during the ramp-up.
About the Kalium Lakes share price
Over the past 12 months, the Kalium Lakes share price has pushed around 5% higher. However, the company’s shares have fallen more than 6% since the start of 2021.
On valuation grounds, Kalium Lakes presides a market capitalisation of roughly $184.9 million, with approximately 1 billion shares outstanding.