Private equity player Greenstone Resources has stumped up $20.8m to take a stake in junior potash explorer Kalium Lakes (ASX:KLL).

The investment will give Greenstone a 19.99 per cent interest in Kalium.

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Greenstone will pay 44c per share, which is a 12 per cent discount to Kalium’s closing share price on Tuesday.

Kalium is advancing its Beyondie project in Western Australia’s East Pilbara region towards production.

“We assess hundreds of potential investment opportunities around the world each year,” Mark Sawyer, a senior partner and co-founder of Greenstone, said.

“What stands Kalium apart from most is the quality of work which has been undertaken to de-risk the project and bring it to this point.”

The new cash injection will allow Kalium to buy the long lead items it needs for its Beyondie project.

“With this key equity placement and terms recently agreed for debt funding of up to $74m from NAIF [Northern Australia Infrastructure Facility] and $102m from [German bank] KFW, our project financing pathway is now clearly identified,” managing director Brett Hazelden said.

Potash comes from salts that contain potassium in water soluble form. It is used as a fertiliser.

There are two commonly used fertilisers – muriate of potash (MOP) and sulphate of potash (SOP).

MOP is the most common (around 90 per cent of the world’s potash) and is used on a variety of crops.

However, the more chloride-sensitive crops like avocados, coffee beans and cocoa require SOP.

>>READ: Potash stock guide: how the Pilbara could help feed the world

The global potash market is estimated to be around 75 million tonnes.

Demand is set to increase as the global population grows to around 8 billion by 2023.

This population growth is expected to drive the need for an extra 100,000 to 150,000 tonnes of potash each year.

Right now, Australia imports all its potash from Canada, the Middle East and Europe. Australia’s MOP and SOP consumption is around 250,000 tonnes each year.

China and big plantation-focused countries in southeast Asia – like Malaysia and Indonesia – are expected to be the key contributors to demand growth.

In other potash news:

Agrimin (ASX:AMN) is today thanking the federal government for its Budget promise of $75m in funding for the Tanami Road in Western Australia.

The upgrade of the Tanami Road, which is part of the Alice Springs to Halls Creek corridor, is a key component of Agrimin’s planned logistics chain to connect its Mackay potash project to Wyndham Port.