Australian Agrimin enters share sale agreement to acquire Kalium Lakes and revise SOP project
HOUSTON (ICIS)–Australian producer Agrimin Limited has announced it has entered into a Share Sale Agreement (SSA) with the receivers of former potash producer Kalium Lakes which held the Beyondie project which was focused on manufacturing sulphate of potash (SOP).
The deal includes Kalium Lakes subsidiaries, Kalium Lakes Potash and Kalium Lakes Infrastructure. These entities comprise all of the operations and employees of the Kalium Lakes group.
Kalium Lake ran into an issue of funding and after lacking further means it went into administration in early August 2023 and appointed McGrathNicol Restructuring, who then announced the project will continue on while it considers options for the sale or recapitalisation efforts.
Agrimin said to undertake its own assessment of the ongoing requirements of the Beyondie project it will initially transition the site to a period of care and maintenance before targeting a recommencement of brine field and pond operations in mid-2024.
The current intention is for a plant restart in H1 2025 and expansion thereafter.
The agreement remains subject to several conditions and events being satisfied before the transaction completes including Agrimin raising capital in the coming weeks to fund the transaction.
It will also need a respective deeds of company arrangement being approved by the creditors of each company.
On the assumption that all conditions are satisfied, completion of the transaction is anticipated in early November with the administrators to have the second meeting of creditors on 3 October.
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