German KfW IPEX-Bank has approved a credit financing for Kalium Lakes Ltd totalling the US / Euro dollar equivalent of AUS$102 million of senior debt funding for the development of the Beyondie Sulphate of Potash Project (BSOPP) in Western Australia. The KfW IPEX-Bank Debt Facilities are, however, still subject to securing a positive decision from the German Government Inter-Ministerial Committee for Export Credit Guarantees and the execution of formal documentation.
Other customary conditions precedent will apply to the debt facilities, including the completion of the residual equity requirement and a Final Investment Decision by the Kalium Lakes’ Board. These facilities form part of the overall funding package for the BSOPP, which includes the previously announced AUS$74M funding package provided by the Northern Australia Infrastructure Facility (NAIF). The facilities were arranged with the assistance of BurnVoir Corporate Finance, Kalium Lakes’ financial adviser.
Kalium Lakes Managing Director, Brett Hazelden, commented on this latest positive development that “we are very pleased to have been offered these KfW IPEX-Bank Debt Facilities, which represent the culmination of many months of diligent work by the Kalium Lakes and KfW IPEX-Bank teams. Final facility documentation is well underway and we anticipate receiving German Government export credit agency Euler Hermes approval in July,” adding that “these major milestones continue to propel Kalium Lakes towards its goal of becoming Australia’s first Sulphate of Potash (SoP) producer.”