Australian Potash welcomes Export Finance Australia due diligence for Lake Wells SOP Project

Australian Potash Ltd (ASX:APC) has welcomed the start of a detailed assessment and due diligence on the Lake Wells Sulphate of Potash Project (LSOP) by the Australian Federal Government’s export credit agency Export Finance Australia (EFA). APC is focused on a Front-end Engineering Design (FEED) Study, finalising offtake discussions and securing financing to develop the LSOP, which is around 500 kilometres northeast of Kalgoorlie, in Western Australia's Eastern Goldfields This follows the release of a positive definitive feasibility study (DFS) in August 2019. Government assistance Managing director and CEO Matt Shackleton said: “Export Finance Australia is instrumental in delivering simple and creative solutions for Australian companies to help them grow internationally, through achieving export success. “We very much look forward to assisting EFA in the next steps in their process.” Due diligence EFA will begin detailed due diligence on providing an additional tranche to the proposed multi-tranche senior debt facility. This tranche will be in addition to (and not replacement of) the previously announced potential Northern Australia Infrastructure Facility (NAIF) tranche and the commercial bank tranche being considered by APC. The company is now reviewing indicative terms sheets provided by commercial lenders following due diligence conducted through September and is aiming to appoint a lead arranger for the multi-tranche syndicated debt facility by the middle of the current quarter. “Compelling export opportunity” Shackleton said: “The export opportunity that our brand new Western Australian based ag-minerals project development at Lake Wells presents is compelling, with 130,000 tonnes of the forecast output under contracted offtake agreement. “At a minimum, 110,000 tonnes of the offtake portfolio will be distributed into the international market, showing once again the enormous opportunity operating in the world’s most attractive mining jurisdiction provides.”