Kalium Lakes (ASX:KLL) - Voluntary Administration

Kalium Lakes (ASX:KLL), a Perth-based mining company focused on its 100% owned potash mine in Western Australia, entered voluntary administration on 3 August. The company has faced significant operational, technical and financial challenges since its inception in 2014 but had made significant progress. Last year it delivered the first commercial sale of Australian sulphate of potash, a valuable fertiliser. Requiring additional capital to achieve profitability, the company launched a strategic process in June and halted trading in its shares. Martin Jones, Matthew Woods and Clint Joseph of KPMG were appointed joint administrators. The appointment was referred to them by the company’s chairperson. Immediately thereafter, Rob Brauer, Jason Preston and Rob Kirman of McGrathNicol were appointed receivers and managers by Westpac and took control of operations. The company was heavily backed by the Northern Australia Infrastructure Fund (NAIF) and German export finance agency KfW. A former director is now speaking out against NAIF, arguing that it used its influence as Kalium’s key financial backer to effectively force directors to explore sale options over the past two months.