Investigator raises alarm over Salt Lake Potash collapse

The findings were made by special purpose administrator Dermott McVeigh, who added that his investigations into Salt Lake Potash were “hindered” by a lack of co-operation by most directors of the failed company.signalled it would begin production at its Lake Way project before the end of June 2021.

Mr McVeigh also raised concern about a $28 million equity raising Salt Lake conducted in May 2021, which was supposed to fund the final ramp up of Lake Way, with first production promised “within weeks” of the raising. “SO4 experienced difficulties with the plant during the commissioning phase; this issue was disclosed at length to the market. The larger and less visible problem, however, was the lack of salt feed stock for the plant.”

“Had they done so, they would have uncovered significant delays to the project and the unfeasibility of the plan presented to the market.“More frequent board meetings, with timely, meaningful and understandable information, including progress against plan and targets, would have assisted directors in keeping themselves informed of SO4’s position and take appropriate action to discharge their duties.

That company was Equatorial Resources, which was hoping to develop an African iron ore project around the time it surprised the market with an investment in Salt Lake.Equatorial disclosed in its annual report that it still held 44,222,233 shares in Salt Lake but had written down the value of that stake to nil, from $15.25 million.

According to Mr McVeigh’s report, Mr Middlemas said he believed an injection of external funding was still possible and “likely available well after October 5”.

OUCH!

the merchant banks n brokers are complicit n deny responsibility

Many trees will be pulped by the Perth lawyers protecting the reputations of their clients. Unfortunately, there is probably no cash left for the Administrator to progress these matters unless the litigation funders see a big pot of honey.

Shitloads of public money, meant for clean energy projects, pissed away to a dodgy miner under LNP

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