Compass Minerals announces $252M investment from Koch Industries unit

Mine drill platforms

jasonbennee

Compass Minerals (NYSE:CMP) said Wednesday Koch Minerals & Trading (KM&T) will invest $252M in the firm to support phase-one development of its 2.4 mMT lithium carbonate equivalent (LCE) Great Salt Lake resource and debt reduction.

KM&T is a global trading, logistics and investment firm and a unit of Koch Industries.

KM&T will buy 6.8M CMP shares at $36.87/share, resulting in total proceeds of $252M.

The private placement is expected to close in Q4.

After the transaction closes, KM&T will own ~17% of CMP's outstanding stock and can appoint two additional members to CMP's board.

~$200M of the investment will be used to advance the first phase of CMP's sustainable lithium development project, representing ~75% of total phase-one funding needs.

CMP expects the project's annual commercial production capacity to ultimately be ~35 kMT LCE, with an initial phase-one capacity of ~11 kMT LCE coming online by 2025.

KM&T and CMP will also explore value creation opportunities across CMP's broader operational platform by leveraging the capabilities of Koch Industries' operating subsidiaries.

CMP expects to use the remaining $52M of proceeds from the KM&T investment to reduce debt.

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