DLA Piper advises SO4 on project financing

Global law firm DLA Piper has advised dual-listed Australian company Salt Lake Potash (ASX/AIM: SO4) (SO4) on its project financing for the development of the Lake Way Sulphate of Potash (SOP) Project in Western Australia.

Funding for the Project is being provided under a USD138 million syndicated facility arranged by Taurus Funds Management and will enable SO4 to continue construction on the Project.

The facility includes USD47 million from the Clean Energy Finance Corporation. The Project has the potential to cut emissions from SOP production by more than 30 per cent compared with alternative non-brine production methods, measured globally. The Project plans to harness renewable energy to reduce onsite emissions with the installation of solar generation and battery storage to power the processing plant.

DLA Piper’s team was led by Finance, Projects and Restructuring senior associate Nic Hemelaar, with assistance from special counsel Katherine Perincek, senior associate Matthew Roberts and solicitor Aimee Jones. Onno Bakker, Head of Finance, Projects and Restructuring, Australia said: "We are delighted to support SO4 in reaching financial close as it continues to progress the Lake Way Project toward first production."

SOP is a premium specialist fertiliser used to improve the quality of high value crops such as fruit and vegetables. The Project is scheduled to begin production in Q1 2021.