Salt Lake Potash Limited Issue of shares and related party transaction (4591J)

TIDMSO4

RNS Number : 4591J

Salt Lake Potash Limited

09 September 2016

 
 9 September 2016   AIM/ASX Code: SO4 
 
 
            SALT LAKE POTASH LIMITED 
  Issue of Shares and Related Party Transaction 
----------------------------------------------- 
 

Salt Lake Potash Limited ("SO4" or the "Company") announces that 180,000 ordinary shares have been issued to a key consultant of the Company in lieu of fees.

Settlement and dealings

Application has been made to the Australian Securities Exchange ("ASX") and the AIM Market of the London Stock Exchange ("AIM") for 180,000 new ordinary shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on both the ASX and AIM. Dealings on AIM are expected to commence at 8:00 a.m. on or around 14 September 2016 (the "Admission").

Following the Admission of the 180,000 new ordinary shares, the Company's issued share capital will comprise 134,007,596 ordinary shares of no par value. The Company does not hold any shares in treasury. This figure of 134,007,596 ordinary shares may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Notice under Section 708A

Salt Lake Potash Limited (the "Company") has today issued 180,000 fully paid ordinary shares. The issued securities are part of a class of securities quoted on the Australian Securities Exchange ("ASX").

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Corporations Act 2001 (Cwth) (the "Act") that:

   1.   the Company issued the securities without disclosure to investors under Part 6D.2 of the Act; 

2. as at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and

3. as at the date of this notice, there is no information that is "excluded information" within the meaning of sections 708A(7) and 708A(8) of the Act.

Related Party Transaction

On 1 July 2015, the Company signed a letter of variation with Apollo Group Pty Ltd ("Apollo") agreeing to pay Apollo a monthly retainer of A$15,000, effective from 1 July 2015 for the provision of serviced office facilities, company secretarial, corporate and administration services.

On 24 February 2016, the Company and Apollo agreed to increase the fee to A$20,000 per month with effect from January 2016.

On 5 September 2016, the Company and Apollo agreed to decrease the fee to A$12,500 per month with effect from August 2016. The agreement has no fixed term, and is able to be terminated by either party with one month's notice.

The transaction described above constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies ("AIM Rules") as Apollo Group Pty Limited is a related party of the Company by virtue of being an "associate" of Mark Pearce, a director for the purposes of the AIM Rules as Mark Pearce holds in excess of 30% of Apollo's share capital and is a director of Apollo.

The independent directors of Salt Lake Potash Limited, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

The information contained within this announcement is considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.

For further information please visit www.saltlakepotash.com.au or contact:

 
 Matt Syme/Sam Cordin                         Salt Lake Potash Limited                    Tel: [phone] 
 Colin Aaronson/Richard Tonthat/Daniel Bush   Grant Thornton UK LLP (Nominated Adviser)   Tel: [phone] 
 Nick Tulloch/Beth McKiernan                  Cenkos Securities plc (Broker)              Tel: [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 09, 2016 08:10 ET (12:10 GMT)