Aspiring potash producer Kalium Lakes (ASX:KLL) just took a major step towards receiving the $74m loan it hopes to use to get its project off the ground.
The loan was approved in principle in February but several steps were required to access the money. One was final approval from the West Australian government and this came yesterday evening.
Premier Mark McGowan signed off on the loan.
“My government is pleased to support this emerging industry through the introduction of lower rental rates, and the development of this project is another sign that our economy is heading in the right direction,” McGowan said.
Potash is a fertiliser used on crops to improve the yield, taste and appearance. Australia consumes 250,000 tonnes of potash annually – entirely imported.
Kalium expects to begin production within 12 months and it will be Australia’s first potash producer. It also is working on a $102m debt funding package with German bank KfW IPEX-Bank.
While Kalium shares rose only modestly this morning they have climbed just over 50 per cent in 2019.
In other ASX corporate news today:
Medtech play Dorsavi (ASX:DSV) has announced 25 per cent of its workforce has been cut since March. This reduced expenses to $5.4m on an annualised basis – 30 per cent lower than the year before.
But this has not been enough – the company said it would seek to raise capital before the year’s end. If unsuccessful it would explore alternative options to achieve a cash flow neutral position.
Earlier this week Sterling Plantations’ (ASX:SDI) palm growers scheme received wind up orders from the High Court of Malaysia. Last night, Sterling told shareholders it was exploring its options to appeal but was also evaluating its future plans and operations.
The company has been suspended from trading for nearly a year and said it would remain so until the matters were resolved and until its operations were adequate to be listed.