This comes after the mineral exploration share provided investors with an update on its latest capital raising efforts.

At the time of writing, Kalium Lakes shares are down 36.96% to 5.8 cents apiece.

In comparison, the All Ordinaries Index (ASX: XAO) is hovering 0.38% lower at 7,353.40 points.

Why is the Kalium Lakes share price in a freefall?

Investors are scrambling to sell Kalium Lakes shares as the company prepares to dilute existing shareholder value.

According to its release, Kalium Lakes has received firm commitments to raise $22 million through a two-tranche placement.

The offer consists of a first tranche of up to 177.3 million new shares to raise up to approximately $7.1 million. This will be utilised under Kalium Lakes' existing placement capacity.

The second tranche is a conditional placement of up to 372.7 million new shares to raise approximately $14.9 million. The tranche is subject to shareholder approval at the company's general meeting to be held in late September 2022.

The issue price for the placement will be 4 cents per share, which represents a 56.5% discount to the closing price of 9.2 cents on 9 August.

In addition, Kalium Lakes will offer all existing eligible shareholders the opportunity to participate through a share purchase plan (SPP).

The offer aims to raise up to $8 million and will be offered at the same price as the two-tranche placement.

Notably, Kalium Lakes' largest shareholder, Greenstone Resources, has committed to take up to $8 million under the placement. The private equity fund has approximately 19.6% of the shares currently on issue. With this investment, its holdings will bump up to a maximum of 24.9% post the capital raising.

Furthermore, Kalium Lakes co-founder and director Brent Smoothy will opt in to buy $2 million under the placement.

The proceeds will be used to fund additional working capital during the ramp-up of Kalium Lakes' Beyondie Sulphate of Potash Mine in Western Australia. Management is targeting an initial production run-rate of 80,000 tonnes per annum by the first quarter of 2023.

The company also successfully negotiated the terms of a debt restructure with its two senior lenders.

What did management say?

Kalium Lakes CEO Len Jubber commented:

We are pleased to have successfully undertaken the debt restructure and received firm commitments for the necessary additional equity injection.

This places the business in a position to now deliver on the targeted ramp-up profile at Beyondie, commencing with the full restart of the SOP process plant in September. I would like to thank our financiers and major shareholders for their support in this process, as well as welcome all new shareholders to the Kalium register.

After today's heavy falls, the Kalium Lake share price has lost 69% over the past 12 months and is down 55% in 2022.

The post This ASX mining share just crashed 37%. Here's why appeared first on The Motley Fool Australia.

The Kalium Lakes Ltd (ASX: KLL), Belararox Ltd (ASX: BRX) and Arafura Resources Ltd (ASX: ARU) shares are all steaming ahead.

Lets take a look at why these three ASX mining shares are attracting investor interest today.

Kalium Lakes Ltd (ASX: KLL)

The Kalium Lakes share price is surging 19.32% to 10.5 cents apiece at the time of writing. It's settled after jumping 25% to 11 cents earlier today. Kalium is developing the Beyondie Sulphate of Potash (SOP) Project in Western Australia. In today's news, the company advised it has validated the process chemistry and plant design for the production of about 400 tonnes of commercially saleable SOP. The company now targets commercial production in July 2022. Commenting on the news, CEO Len Jubber said:

Kalium Lakes is the first SOP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SOP price environment.

Belararox Ltd (ASX: BRX)

Belarox shares are soaring nearly 22% today. Investors appear to be buying up the mineral explorer's shares after it identified 34 new exploration targets outside the Belara and Native Bee resource areas. Belarox is exploring the Belara Project in the Lachlan Fold Belt of New South Wales. Of these targets, 11 had a combined strike of eight kilometres, eight times the known mineralisation. Belarox is searching for zinc, copper, gold, silver, nickel, and lead. The company is particularly focussed on clean energy metals, including those used in electric vehicles (EV). Commenting on the news today, managing director Arvind Misra said:

We are excited with the findings of the prospectivity modelling work and look forward to extending our knowledge with downhole EM surveys and additional targeted drilling in the highest prospective areas.

Arafura Resources Ltd (ASX: ARU)

The Arafura Resources share price is soaring 16.7% today despite no new news from the company. However, in a tweet yesterday, the rare earths explorer said it is continuing to introduce itself to "significant national and international investors". The company highlighted it presented at three conferences last week. These included the UBS Australian Emerging Companies Conference, the ALTA Presenter Breakfast, and the Austmine CEO Leadership Luncheon. Arafura is developing the Nolans Project for Neodymium-Praseodymium (NdPR) oxide in the Northern Territory. In the presentation to Austmine, Arafura highlighted the project is the only "NdPR focussed project in Australia" planning to mine and process ore to oxide at the one site. On 19 May, Arafura signed a non binding memorandum of understanding with Hyundai for the supply of NdPR oxide from the Nolans project.

The post 3 ASX mining shares going gangbusters on Tuesday appeared first on The Motley Fool Australia.

In morning trade, the sulphate of potash (SOP) developer's shares are up 25% to 11 cents.

Why is the Kalium Lakes share price racing higher?

Investors have been bidding the Kalium Lakes share price higher this morning after the company released an update on its Beyondie SOP Project.

According to the release, the company has validated the process design with production of approximately 400 tonnes of commercially saleable SOP.

In light of this, management appears confident that the Beyondie SOP Project will be operating at an approximate 80,000 tonnes per annum SOP production run rate by the first quarter of calendar year 2023.

After which, the company expects to reach its targeted 120,000 tonnes per annum run rate around 18 months later.

In addition, Kalium Lakes revealed that its SOP purification plant commissioning is proceeding as planned, with equipment testing well advanced and continuing in June and July.

Finally, management advised that discussions with debt providers and key offtake partner, K+S, are advancing in relation to funding initiatives and SOP deliveries, respectively.

Kalium Lakes' Chief Executive Officer, Len Jubber, commented:

We are very pleased that through recent equipment testing and the production of SOP we have been able to validate the overall process chemistry and plant design. We are now focussed on systematically addressing the remaining bottlenecks in the plant and progressively increasing production.

Plant operations during 2022 will be variable taking into account our need to conduct further mechanical debottlenecking activities and build KTMS inventory. Kalium Lakes is the first SOP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SOP price environment. We believe the Company has an exciting future and we would like to thank all stakeholders, including shareholders, for their patience.

The post Here's why the Kalium Lakes share price is rocketing 25% higher today appeared first on The Motley Fool Australia.

They've each gained more than 30% in intraday trade on Monday, with one surging by as much as 239%.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 0.3% today, while the S&P/ASX 200 Resources Index (ASX: XJR) ended 1.61% higher.

So, what's helped send these ASX mining shares shooting for the stars today? Let's take a look.

3 ASX mining shares that took off on Monday

Kalium Lakes Ltd (ASX: KLL)

The Kalium Lakes share price was going gangbusters today, reaching 12 cents at its intraday high – representing a 57.8% gain.

As at Monday's close, the company's stock had slipped slightly to trade at 10.2 cents, still 34.2% higher than it was at the end of Friday's session.

While there's been no recent news out of the potash-focused minerals developer, there have been plenty of headlines regarding its future product.

As the Australian Financial Review reported last week, the world is experiencing a fertiliser shortage.

Russia normally exports around 15% of the world's fertiliser, according to the publication, while ally Belarus is a major source of potash-based fertiliser.

As both have been hit by sanctions amid surging gas prices, fertiliser is becoming rarer and more expensive.

While that might be bad news for food availability, it could provide a boost to the ASX miner's bottom line and help drive its share price higher.

Tempest Minerals Ltd (ASX: TEM)

The Tempest Minerals share price was also on the up-and-up on Monday.

At its highest trading point of the day, shares were swapping hands a whopping 291% higher at 9 cents apiece.

At the market close, Tempest shares had gained 278% to trade at 8.7 cents.

Today's gains come on the back of news the company has struck copper at its Meleya Project's Orion Target.

Its maiden drillhole struck the visible mineralisation. Assays on the find are now pending.

The news saw the company break a 2-session trading halt.

Far East Gold Ltd (ASX: FEG)

The final ASX mining share recording gains of more than 30% on Monday is one that landed on the exchange only hours ago.

The Far East Gold share price reached a high of 32.5 cents on the day of its float, representing a 62.5% gain on its initial public offering (IPO) price of 20 cents.  

While that impressive gain didn't last – the ASX mining share closed trading 27.5% higher at 25.5 cents – it likely left an impression on market watchers.

The junior explorer holds a portfolio of six gold and copper projects located in Queensland and Indonesia.

At its offer price, with approximately 215.82 million shares outstanding, the company had a market capitalisation of $43 million.

As of its first close, the ASX miner holds a valuation of around $55 million.

The post 3 ASX mining shares blasting more than 30% higher today appeared first on The Motley Fool Australia.

At the time of market close, the Kalium Lakes share price was down 16.1%, trading at 13 cents apiece. Let's take a look at what might have sent its shares down today.

But first, a little background…

The company's Beyondie SOP Project, located in Western Australia, is mining to extract and produce sulphate of potash (SOP) — a high yield, premium fertiliser.

SOP is attractive for use in the growth of good-quality fruit and vegetables, enriching the colour of flowers and ultimately increasing potassium levels in organic fertilisers.

Kalium Lakes' SOP production project is the first of its kind for Australia, and the company aims to deliver the product to both local and international markets.

Project construction completed

In the update released this morning, Kalium Lakes announced it had completed construction of the BSOPP site and obtained an operating license for the site from the Western Australia Department of Water and Environmental Regulation.

However, the miner also reported a lower-than-expected quantity of harvested and produced potassium salts.

The miner advised it had successfully produced a small amount of standard grade SOP, and deemed it a "practical achievement" for the site.

Looking forward, the company has identified later-stage commissioning hurdles with the SOP purification plant — including the variability in grades of harvested potassium salt, process control and non-critical mechanical issues.

However, both Kalium Lakes and its German partner, EBTEC (a joint venture that includes German-based K-UTEC AG Salt Technologies), have committed to resolve these issues to ensure smooth operations from here on.

Management commentary

Commenting on the updates, K-UTEC CEO Markus Pfänder said:

This is a strong validation of the process flowsheet and the work of all on-site personnel in delivering this landmark milestone. We now look forward to working alongside the Kalium Lakes' team in completing commissioning and driving plant ramp up to steady state operations. 

All encountered plant issues are resolvable and we are currently implementing a detailed action plan to deliver targeted nameplate plant output levels.

Kalium Lakes CEO Len Jubber added:

The focus of the Kalium Lakes' team and its project partners remains unchanged — delivering Beyondie to
commercial production and then nameplate capacity in a safe and sustainable manner as rapidly as
possible.

Kalium Lakes share price snapshot

The Kalium Lakes share price has experienced a volatile year, dropping 33% since January.

The company has a market capitalisation of around $152 million based on its current share price.

The post Why did the Kalium Lakes (ASK:KLL) share price sink 16% today? appeared first on The Motley Fool Australia.

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.

The post Why is the Kalium Lakes (ASX:KLL) share price climbing today? appeared first on The Motley Fool Australia.

Below, we take a look at this morning's investor presentation that appears to be driving interest in the ASX resource share.

What did Kalium report today?

Kalium Lakes' share price is leaping higher after the company reported it's on the brink of becoming a long life, low cost, high-grade SOP (Sulphate of Potash) producer at its Beyondie SOP Project in Western Australia.

SOP is an agricultural fertiliser and is the preferred form of potassium to use on high-salinity soils. Currently, there is no SOP production in Australia.

According to Kalium's presentation, construction at its Beyondie project is almost finished and within budget. Kalium is forecasting its first SOP production in September.

The company said it has significant inventories of some 90,000 tonnes of potassium salts produced and waiting on run of mine (ROM) stockpiles, ready for the production start-up. That's equivalent to approximately 9,000 tonnes of SOP production.

The statement on its Beyondie SOP production expansion plans is also likely stoking the Kalium Lakes share price today. Kalium said it has completed a feasibility study on the immediate expansion from 90 kilo-tonnes per annum (ktpa) to 120 ktpa, a level it can reach by the fourth quarter of 2022.

The study revealed the company can deliver the additional 30 ktpa for a capital cost of $45 million. That works out to $1,513/tonne compared to the $3,113/tonne for the initial 90 ktpa production capacity.

The gas supply infrastructure in place is sufficient to supply the expanded production, while "only a small upgrade to the power station" will be needed to increase production to 120ktpa of SOP.

Kalium also cited a "buoyant SOP market", forecasting year-on-year price increases. It estimates Beyondie to have a 50-year mine life, with significant expansion opportunities ahead.

Kalium Lakes share price snapshot

Kalium Lakes' share price has gained 37% over the past 12 months, compared to a gain of 23% on the All Ordinaries Index (ASX: XAO).

Year-to-date, Kalium shares are up by more than 5%.

The post Why the Kalium Lakes (ASX:KLL) share price is rocketing 14% today appeared first on The Motley Fool Australia.

Below we take a look at the latest update from the ASX resource share.

What did Kalium report?

The Kalium lakes share price is seeking direction today after the company provided a commissioning update on its Beyondie SOP Project in Western Australia.

According to the release, Kalium has pumped mor than 113,000 tonnes of contained SOP (sulphate of potash) as at end July 2021. It also has 90,000 tonnes of potassium salts stockpiled, which corresponds to some 9,000 tonnes of SOP production.

With harvesting operations running uninterrupted and on track, Kalium expects first production of SOP in late September.

The ASX resource share also reported that costs to complete construction and commissioning activities are within its capital expenditure budget.

Commenting on the progress, Kalium CEO Rudolph van Niekerk said:

Having installed a robust network of brine supply and evaporation ponds, we continue to reap the bounty of large volumes of potassium salts above the plant feed cut-off grade, which are harvested and delivered to the ROM pad. With this ample supply of potassium salts, we have expanded our stockpile area and will soon be ready to move from commissioning to production.

Kalium reported that the potassium salt – including what's already been harvested and what's ready for harvest – accounts for around 6 months of SOP production during the ramp-up period.

Niekerk added, "We are entering the final phase of the project and, with several areas of the plant ready for water commissioning, there are only a couple of months to go before commencement of SOP production."

Kalium Lakes share price snapshot

Over the past 12 months, the Kalium Lakes share price has gained 68%, well outpacing the 26% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, Kalium Lakes shares have continued to outperform the benchmark, up 18% in 2021.

The post What's happening with the Kalium Lakes (ASX:KLL) share price? appeared first on The Motley Fool Australia.

Australian Potash has fallen 11.43% this week and is currently trading at 15 cents after the company announced a $10 million capital raise from investors. Meanwhile, Salt Lake Potash is down 8.75% this week trading at 36.5 cents as the company announced plans to raise $28 million.

About the potash industry

Potash is a naturally occurring substance containing large amounts of potassium that is utilised in making fertilisers. The potash these companies mine is predominantly used to manufacture sulphate of potash (SOP.)

Potassium sulphate is the second major form of potash and is seen as superior over the more abundant potassium chloride (known as MOP). Primarily, this is due to the toxic impact chloride has on many food plants and as such SOP demands up to a 40% premium.

According to a report in the Australian Financial Review recently, the potash industry is slowly coming back to life as money is being pumped into the sector thanks to the potential of SOP. Thus, the race is on between a number of small-cap potash producers to be the first to turn out SOP in Australia.

Other ASX-listed potash players include Kalium Lakes Ltd (ASX: KLL), Agrimin Ltd (ASX: AMN) and BHP Group Ltd (ASX: BHP). BHP said recently that potash was one of four projects under development this year.

Salt Lake Potash winning the race

This week, Salt Lake Potash announced it had completed an institutional placement to enable a final debt drawdown. The $28 million raised at 35 cents a share also enabled access to additional funding through a bank guarantee provided by Sequoia. However, the news has not stopped the Salt Lake Potash share price from plummeting as the company also provided a Lake Way update.

According to the company, the project is on schedule for production in June 2021 with the first sales coming shortly after. As such, plant commissioning is more than 50% complete. However, the capital budget for the works has now increased by $5 million to $269 million in order to de-risk the salt production.

Nonetheless, the company still looks like it will be the first Australian company to both produce and sell SOP across the world.

Australian Potash equity raising

The Australian Potash share price has also fallen significantly this week as the company announced a $10 million capital raise for institutional and sophisticated investors.

The funds similarly to above will be used to progress its Lake Wells SOP project. There are several pre-development activities including building the Lake Wells village.

Australian Potash managing director and CEO Matt Shackleton said:

The heavy institutional and sophisticated investor demand for the offer reflects well on the Lake Wells SOP Project's very robust financial metrics, and supports our transition into development. The LSOP (Lake Wells Sulphate of Potash) still carries the largest 100% measured JORC compliant SOP resource across the space, which speaks to the technically de-risked nature of the development.

In addition to the LSOP, we look forward to unlocking the inherent value in the Laverton Downs nickel sulphide targets with a maiden diamond program scheduled to commence in May.

The post Why have these ASX potash shares been crashing this week? appeared first on The Motley Fool Australia.

The ASX resource share is focused on sulphate of potash (SOP) production. SOP is a high yielding fertiliser used in Australia and internationally. According to the company, there is currently no SOP produced domestically.

Below we take a look at the company's latest announcement regarding its Western Australia Beyondie SOP project.

What did the company announce?

The Kalium Lakes share price is soaring after the company reported a major capacity upgrade at its Beyondie SOP Purification Plant.

According to the release, the final plant design indicates SOP production of at least 100 kilotonnes per annum (ktpa) is achievable. The company added that the additional short-term and "low capital intensity production" opportunities are under review to reach a potential of 120 ktpa of SOP.

Further down the track, Kalium Lakes reported it is assessing other options to get the most value from the project, which includes expanding SOP production to 400 ktpa along with extracting by-products like magnesium for commercial use.

Commenting on the upgrade, Rudolph van Niekerk, Kalium Lakes CEO said:

We are pleased to announce that a 'debottlenecking' style review of the plant design for the Beyondie SOP Project confirms that an annual steady-state production rate of at least 100ktpa is achievable. Additionally, the current evaporation ponds' performance indicates that this production rate can be achieved by mid-2022.

The company is also confident that a production increase to 120ktpa can be achieved without the need for substantial plant modifications and is currently examining pathways to deliver this outcome…. The current resource would support 400ktpa of SOP production for 20+ years…

Kalium Lakes share price snapshot

Over the past 12 months, Kalium Lakes shares have gained almost 44%, slightly trailing the 48% gains delivered by the All Ordinaries Index (ASX: XAO).

Year to date, the Kalium Lakes share price is up 15%.

The post Why the Kalium Lakes (ASX:KLL) share price is leaping 7% today appeared first on The Motley Fool Australia.