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Salt Lake Potash #SO4 – March 2019 Quarterly Report & Appendix 5B Report

The Board of Salt Lake Potash Limited (the Company or Salt Lake Potash) is pleased to present its Quarterly Report for the period ending 31 March 2019.

The Company is focussed on rapidly progressing the development of its Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

Significant Increase in the high-grade SOP resource at Lake Way

Ø Mineral Resource Estimate for the whole of Lake Way contains 73 million tonnes (Mt) of SOP using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity, including:

Measured – Lake Way Playa – 6.9Mt (total porosity) & 1.8Mt (drainable porosity) @ 15.4kg/m3

Measured – Williamson Pit 32Kt (drainable porosity) @ 25.5kg/m3

Indicated – Paleochannel 3.7Mt (total porosity) & 1.4Mt (drainable porosity) @ 13.6kg/m3

Inferred – Lake Way Playa & Paleovalley Sediment 62.2Mt (total porosity) & 5.0Mt (drainable porosity) @ 15.2kg/m3

Ø Lake Way confirmed as very high-grade with consistent brine chemistry both laterally and at depth, with an average grade of 14.5kg of SOP per cubic metre of brine across the Lake Way tenements (Measured and Indicated)

Ø The Company has successfully delineated a Paleochannel in excess of 30km in length along the eastern boundary of Lake Way, which supports the ability and optionality to produce brine from two separate sources (lake playa and paleochannel)

Ø The Mineral Resource Estimate for the ‘whole of lake’ will enable the Company to progress technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019

Key Approval Obtained and Construction of initial Lake Way Ponds Commences

Ø Following receipt of the final approval from the Department of Water and Environmental Regulation (DWER), construction and operation of the First Phase of Lake Way Evaporation Ponds (Lake Way Ponds) immediately commenced

Ø Construction works for the Lake Way Evaporation ponds are progressing well with the Company having commenced 24/7 operations to rapidly progress development

Ø The first phase of the Lake Way Ponds will enable de-watering of the Lake Way Williamson Pit that contains the highest grade brine resource in Australia. Dewatering is expected to commence in Q2, 2019

Ø Onsite infrastructure for de-watering the Williamson Pit is under construction, including the placement and welding of piping

Ø The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash’s pathway to first production of SOP at Lake Way

Binding Access Agreement Signed with Blackham Resources

Ø A binding Split Commodity and Access Agreement with Blackham Resources was executed for  the Lake Way Project, in line with the terms of the MOU

Ø Under the Agreement, Salt Lake Potash acquires the brine rights over Blackham’s tenure and Blackham will acquire gold rights over Salt Lake Potash’s tenure. Each company retains a royalty on their respective mineral resources

Ø The Agreement with Blackham facilitates an accelerated pathway to production through the utilisation of Blackham’s Mining Lease for early construction works and the de-watering and utilisation of the high grade Williamson Pit brine

Planned Activities for the Lake Way Project over the coming months

Ø Completion of initial Lake Way Ponds and commencement of dewatering the Williamson Pit

Ø Resource drilling and trenching in the southern section of Lake Way to enable the Company to upgrade the resource category in the lake bed sediments.

Ø Progress technical studies for a larger production scenario with an anticipated release date during Q2 2019

Ø Completion of pilot plant process testwork at Saskatchewan Research Council (SRC) to lockdown process flowsheet and produce SOP product samples for end user trials

Ø Ongoing discussions with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) to convert Native Title Land Access and Exploration Agreement for Lake Way into a Native Title Mining Agreement

OVERVIEW

Salt Lake Potash is the owner of nine large salt lakes in the Northern Goldfields Region of Western Australia.  This outstanding portfolio of assets has a number of important, favourable characteristics:

·     Over 3,300km2 of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

·     Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low-cost trenches and deeper bores;

·     Excellent evaporation conditions;

·     Excellent access to transport, energy and other infrastructure in the Goldfields mining district;

·     Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale; and

·     Potential for multi-lake production offers optionality and significant scale potential, operational flexibility, cost advantages and risk mitigation from localised weather events.

Salt Lake Potash’s immediate focus is on the rapid development of the Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash production operation in Australia. Lake Way’s location and logistical advantages make it the ideal location for the Company’s first SOP operation. Construction has commenced on Australia’s first commercial scale on-lake evaporation ponds.

The Company’s long term plan is to develop an integrated SOP operation, producing from a number (or all) of the lakes.  Salt Lake Potash will progressively explore each of the lakes with a view to estimating resources for each Lake, and determining the development potential. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

LAKE WAY PROJECT

Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2.

Salt Lake Potash holds five Exploration Licences (two granted and three under application) and one application for a Mining Lease, covering most of Lake Way and select areas off-lake, including the paleochannel defined by previous exploration. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine.

In April 2019, the Company entered into a binding Split Commodity and Access Agreement with Blackham in relation to the development of the Lake Way Project on terms in line with the previously executed MOU announced on 12 March 2018.

Lake Way has a number of compelling advantages which make it an ideal site for Salt Lake Potash’s initial SOP operation, including:

Ø  Utilisation of Blackham’s existing infrastructure (including camps, power and maintenance) to accelerate development.

Ø  The site has excellent freight solutions, being adjacent to the Goldfields Highway, which is permitted for heavy haulage, quad trailer road trains to the railhead at Leonora and then direct rail access to both Esperance and Fremantle Ports, or via other heavy haulage roads to Geraldton Port.

Ø  The Goldfields Gas Pipeline is adjacent to Salt Lake Potash’s tenements, running past the eastern side of the Lake.

Ø  Access to Blackham’s existing Mining Leases provides advanced permitting pathway for early development activity, including the construction of the initial Lake Way Evaporation Ponds.

Ø  Salt Lake Potash has commenced construction of the initial Lake Way Evaporation Ponds which will enable the Company to dewater the existing Williamson Pit. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages over 14kg/m3.

Ø  The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

Ø  The presence of clays in the upper levels of the lake which are amenable to low cost, on-lake evaporation pond construction.

The Company is concurrently progressing the construction of the initial Lake Way Evaporation Ponds, whilst also rapidly advancing a ‘whole of lake’ scenario, including mineral resource estimates, permitting and approvals, pilot plant process testwork and assessment of infrastructure and logistical options.

The Mineral Resource Estimate for the ‘whole of lake’ reported in March 2019 will enable Salt Lake Potash to progress technical studies for a larger production scenario with an anticipated release date towards the end of the current quarter.  

Discussions are also ongoing with a number of offtake partners and the testwork currently underway at SRC will provide high-grade SOP product samples for testing by these partners.

Field Work

During the quarter, the Company completed an extensive field based program providing inputs for the ‘whole of lake’ Mineral Resource Estimate announced in March 2019.

Thirteen shallow bores were drilled to a maximum depth of 7m, and each hole was sampled for brine and completed as piezometers for use in future water level monitoring. Up to three insitu samples were taken from each bore and analysed in the lab for total porosity and specific yield. 

Trench 5 was excavated to a depth of 4m or refusal and to length of 110m.  The trench was test pumped for a total of 10 days and the brine drawdown around the trench was measured using piezometer areas extending 100m from the trench.  This data was used to determine drainable porosity and aquifer hydraulic conductivity.

Two historic investigation bores were test pumped to determine aquifer parameters.  The bores were pumped by Global Groundwater Pty Ltd at a constant rate for 24 hours.  Water level drawdown in the pumped bore, and in nearby observation bores was monitored manually and by data logger.  The data was analysed to determine aquifer properties of transmissivity (Product of bulk average hydraulic conductivity and aquifer thickness), Storage coefficient and boundary conditions.

Several additional lines of passive seismic survey were also completed during the Quarter.  The results were interpreted and incorporated into the overall dataset. Correlation of the passive seismic dataset with the historical drilling confirmed the presence of a significant paleochannel with several tributaries lying beneath the lake surface down the eastern side of the lake.  

Mineral Resource Estimate

In March 2019, the Company completed an extensive exploration program covering the remaining areas of Lake Way and reported a ‘whole of lake’ Mineral Resource Estimate, covering the playa surface and the Paleochannel aquifers of Lake Way. 

The Mineral Resource Estimate of 73Mt of SOP calculated using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity is hosted within approximately 15 billion cubic metres of sediment ranging in thickness from a few metres to over 100m, beneath 189km2 of Playa Lake surface including the paleochannel basal sand unit of 20m thickness and 30km length.

The Mineral Resource Estimate for Lake Way is divided into resource classifications that are controlled by the host geological units:

·     Lake Bed Sediment

·     Paleovalley Sediment

·     Paleochannel Basal Sands

The mineral resource estimate is summarised in the Tables below:

Table 1: Measured Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

North Lakebed

(0.4-8.0 m)

1,060

6.8

8.0

27.6

0.42

445

6.9

0.11

117

1.8

Williamson Pit

1.26

11.4

14.7

48.0

1.26

0.03

Total

6.9

1.83

 

Table 2: Indicated Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

Basal Sands

(Paleochannel)

686

6.1

8.2

25.0

0.40

274

3.7

15

103

1.4

 

Table 3: Inferred Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

South Lakebed

(0.4-8.0 m)

316

6.8

8.0

27.6

0.42

133

2.0

0.11

35

0.5

Lakebed

(8m to Base)

9,900

6.8

8.0

27.6

0.40

3,960

60.0

0.03

297

4.5

Total

62.0

5.0

(1) The Drainable Porosity does not include the significant resource potentially available through the recharge cycle. Refer Announcement dated 18 March 2019, Appendix 1.

The northern section of Mineral Resource Estimate (including the Blackham tenements) has been classified into a Measured category for the upper 8m of lakebed sediments. The resources contained within the lakebed sediments below 8m, and the southern section of the lake at all depths, are all classified in the Inferred category. The Paleochannel running along the eastern boundary of the lake has been classified in the Indicated category.

The Company will complete further drilling and trenching during the current quarter to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.

For further details on the Mineral Resource Estimate, refer to the Company’s Announcement dated 18 March 2019.

Civil Construction – On-Lake Infrastructure

Construction of the initial Lake Way Evaporation Ponds (Lake Way Ponds) commenced in March 2019 following receipt of the Part V works approval from the Department of Water and Environmental Regulation (DWER). The approval allows construction and operation of the Company’s initial phase commercial scale evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

Salt Lake Potash is constructing Australia’s first commercial scale on-lake evaporation ponds for a Sulphate of Potash (SOP) project at Lake Way. The initial phase ponds will consist of:

·     Two evaporation ponds:

(i)   Kainite Harvest Pond 500m x 500m (25 Ha); and

(ii)  Halite Pond 2,000m x 500m (100 Ha);

·     A 2km long and 8m deep trench is also being constructed running parallel to the ponds which will provide additional brine feed into the pond network;

·     A 1.4km causeway from the Williamson Pit to the Kainite Harvest Pond; and

·     Associated piping and pumping infrastructure.

The initial Lake Way Ponds will have a volume of 1.8GL which will be capable of capturing the total Williamson Pit Measured Brine Resource (1.2GL @ 25kg/m3 SOP equivalent).

The construction of the initial Lake Way Ponds is on track to be completed by the end of Q2 2019. The de-watering of the 1.2GL of Williamson Pit brine is expected to commence towards the end of Q2 2019.

Construction works for the Lake Way Ponds are progressing well with the Company moving to 24/7 operations to rapidly progress development. The Company is undertaking a wet hire and self-perform model for the construction of the initial Lake Way Ponds. This construction model allowed fast track mobilisation and execution of the works, whilst providing the Company with critical hands on experience allowing testing and validating of all design criteria to de-risk the future on-lake construction.

The construction works for the pond bund walls involves the stripping of the sandy evaporite layer of material on the lake’s surface and constructing the bund walls from adjacent won lake material. A key trench is then constructed at the upstream toe of the embankment.

The works are being completed with a number of specialised pieces of civil earthmoving equipment suited to the unique conditions, including amphibious excavators and low ground pressure equipment.

The de-watering of the Williamson Pit will commence in Q2 2019 once the first phase of the evaporation ponds is complete. Onsite preparation works have commenced for de-watering activity including the placement and welding of piping.

The Company has also established support infrastructure on Lake Way, comprising a site office, crib room, and full mechanical workshop with canopy capable of undertaking repairs to our fleet of equipment onsite without the need for demobilization to external repair facilities.

The Company continues to progress the Early Contractor Involvement (ECI) process for the larger ‘whole of lake’ development. Initial proposals for various elements of the on-lake development work have been received and are in the process of review.

Continuous Site Evaporation Trial

The Company commenced a further site evaporation trial (SET), with the objective of replicating the proposed Lake Way evaporation process in a continuous manner to produce harvest salts representative of on-lake conditions. Furthermore, these SETs will provide valuable experience to operators of large-scale ponds and enable testing of the currently proposed control philosophy of the solar evaporation ponds. The harvest salts attained from these continuous SETs will provide feedstock for testwork to provide design inputs for the commercial processing plant equipment.

The continuous SETs are currently reaching a steady-state, running as expected and producing harvest salts confirming the viability of the proposed Lake Way pond system design.

Weather stations are being procured and installed to accurately log the weather conditions at Lake Way. This in conjunction with on-going PAN evaporation trails, at various Mg concentrations, will allow Salt Lake Potash to accurately build a profile of the weather conditions expected at Lake Way and firm up final design and operational requirements.

Process Testwork

During the quarter, the Company engaged the world’s leading potash processing laboratory, Saskatchewan Research Council (SRC), to establish a pilot plant based on the process flow sheet for the Lake Way Project. The pilot plant will validate and refine the Lake Way process flowsheet and also produce high-grade SOP product samples for offtake partners.

Bench testwork from the initial batch of harvest salts delivered to SRC is now complete, thus confirming the flow sheet for the first pilot run.

The second batch of harvest salts has arrived at SRC for further test work and production of SOP product samples. Pilot plant testwork at SRC is expected to be completed during Q2, 2019.

In parallel SRC will also produce a measured amount of schoenite salt, enabling the selected crystalliser supplier to finalise preliminary design.

Native Title

In December 2018, the Company signed a Native Title Land Access and Brine Minerals Exploration Agreement (the Agreement) with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) covering the Lake Way Project area.

TMPAC entered into the Agreement with Salt Lake Potash on behalf of the Wiluna People who are the recognised Native Title Holders of the land covering the Lake Way Project area. TMPAC also provided consent for the total area required for the construction and operation of the initial Lake Way Ponds.

Salt Lake Potash and TMPAC are finalising negotiations on the terms of a Native Title Mining Agreement required for the ongoing mining operation.

Approvals Advancing

The Company received final approval from the Department of Water and Environmental Regulation (DWER) for the Part V works approval in March 2019, for construction and operation of the initial evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

The Department of Mines, Industry Regulation and Safety (DMIRS) has previously approved the Company’s Mining Proposal and Project Management Plan for the initial Lake Way Ponds, enabling an immediate start to construction.

A series of studies have continued to progress during the quarter in support of the ongoing environmental approvals. These include flora and fauna surveys, hydrological assessment, flood modelling and geotechnical investigations. Initial findings of these studies have indicated that:

·     The planned minimal clearing of native vegetation and fauna habitat will not cause adverse impacts to flora or fauna of high conservation significance;

·     Groundwater drawdown will not alter current groundwater levels;

·     Construction of ponds on the lake surface will result in negligible local increases in water levels (Knight Piesold, 2019); and

·     Underlying lake sediments show no significant sulfidic or sulphuric materials and/or monosulfidic black oozes, and the lake system has significant buffering capacity to neutralise potential impacts, if any.

During the quarter E53/1897 was granted, SO4’s granted tenure at Lake Way now covers approximately 278km2 with an additional 143km2 under application including Mining Lease Application M53/1102 applied for in March 2019. 

Access Agreement

In April 2019, the Company entered into a binding Split Commodity and Access Agreement (Agreement) with Blackham Resources Limited (Blackham) in relation to the development of the Lake Way Project on terms in line with the previously executed MOU announced on 12 March 2018.

The Agreement with Blackham facilitates an accelerated pathway to production through the utilisation of Blackham’s Mining Lease for early construction works and the de-watering and utilisation of the Williamson Pit brine.

Under the Agreement, Salt Lake Potash will acquire Blackham’s brine rights and Blackham will acquire gold rights to Salt Lake Potash’s Lake Way holdings, with each company retaining a royalty on their respective holdings.

The Agreement is binding on the parties with the key terms including:

·     Salt Lake Potash to acquire the Brine Rights over the Blackham tenements;

·     Blackham to acquire the Gold Rights over the Salt Lake Potash tenements;

·     Salt Lake Potash to receive a 2% royalty on all gold production from the Salt Lake Potash tenements;

·     Blackham to receive a 4% royalty on all Brine production (including SOP) from the Blackham tenements;

·     Salt Lake Potash to make a rehabilitation liability payment of $500,000 to Blackham by 30 June 2019. This amount is deductible from future brine royalties;

·     Salt Lake Potash is required to achieve the following construction and production milestones:

o  Completion of the de-watering of the Williamson Pit by 31 July 2019;

o  Commence the construction of the SOP processing plant by 30 June 2020; and

o  Achieve first commercial production of SOP by 31 December 2021

These dates may be extended by mutual agreement.

The following Conditions Precedent must be satisfied within 2 months of the date of the Agreement (or such later date as may be agreed by the parties):

·     the Minister consenting (to the extent required):

o  to Blackham granting the Brine Rights to Salt Lake Potash;

o  to Salt Lake Potash granting the Gold Rights to Blackham.

·     Blackham obtaining any approvals necessary to proceed with the Agreement, including the release of various encumbrances relating to the Brine Rights.

Corporate

During the Quarter, the Company appointed Mr Matthew Bungey as Project Director – Strategy and Funding. Mr Bungey’s initial focus is on advancing various funding alternatives for the Lake Way Project including debt financing, strategic partners and royalty financing.

Mr Bungey is an experienced advisor across M&A and financing, most recently as Managing Director with Barclays Bank in London. He has been involved in tens of billions of dollars of executed M&A transactions across the resources and agriculture sectors. Mr Bungey has also been involved in numerous financings and is a Board member of BGC Australia. Prior to banking he worked as a Chemical Engineer in the mining sector.

Discussions with a number of financiers regarding project financing are progressing well.

For further information please visit www.so4.com.au or contact:

 

Tony Swiericzuk / Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 7540 366000

Colin Aaronson / Richard Tonthat / Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee / Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Rupert Fane / Ingo Hofmaier / Ernest Bell

Hannam & Partners (Joint Broker)

Tel: +44 (0) 20 7907 8500

 

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake, which could cause actual results to differ materially from such statements. Salt Lake makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement. 

Competent Persons Statement

The information in this Announcement that relates to Mineral Resources is extracted from the report entitled ‘Significant High-Grade SOP Resource Delineated at Lake Way’ dated 18 March 2019. This announcement is available to view on www.so4.com.au. The information in the original Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Appendix 1 – Summary of Exploration and Mining Tenements

As at 31 March 2019, the Company holds interests in the following tenements:

 

Project

Status

Type of Change

License Number

Interest (%)

1-Jan-19

Interest (%)

31-Mar-19

Western Australia

Lake Way

Central

Granted

E53/1878

100%

100%

East

Application

E53/2057

100%

100%

South

Granted

Granted

E53/1897

100%

100%

South

Application

E53/2059

100%

100%

South

Application

E53/2060

100%

100%

Central

Application

Application

M53/1102

100%

Lake Wells

Central

Granted

E38/2710

100%

100%

South

Granted

E38/2821

100%

100%

North

Granted

E38/2824

100%

100%

Outer East

Granted

E38/3055

100%

100%

Single Block

Granted

E38/3056

100%

100%

Outer West

Granted

E38/3057

100%

100%

North West

Granted

E38/3124

100%

100%

West

Granted

L38/262

100%

100%

East

Granted

L38/263

100%

100%

South West

Granted

L38/264

100%

100%

South

Granted

L38/287

100%

100%

South Western

Granted

E38/3247

100%

100%

South

Granted

M38/1278

100%

100%

Central

Application

Application

E38/3380

100%

Lake Ballard

West

Granted

E29/912

100%

100%

East

Granted

E29/913

100%

100%

North

Granted

E29/948

100%

100%

South

Granted

E29/958

100%

100%

South East

Granted

E29/1011

100%

100%

South East

Granted

E29/1020

100%

100%

South East

Granted

E29/1021

100%

100%

South East

Granted

E29/1022

100%

100%

South

Application

Application

E29/1067

100%

South

Application

Application

E29/1068

100%

North

Application

Application

E29/1070

100%

Lake Irwin

West

Granted

E37/1233

100%

100%

Central

Granted

E39/1892

100%

100%

East

Granted

E38/3087

100%

100%

North

Granted

E37/1261

100%

100%

Central East

Granted

E38/3113

100%

100%

South

Granted

E39/1955

100%

100%

North West

Granted

E37/1260

100%

100%

South West

Granted

E39/1956

100%

100%

Lake Minigwal

West

Granted

E39/1893

100%

100%

East

Granted

E39/1894

100%

100%

Central

Granted

E39/1962

100%

100%

Central East

Granted

E39/1963

100%

100%

South

Granted

E39/1964

100%

100%

South West

Granted

E39/1965

100%

100%

Lake Marmion

North

Granted

E29/1000

100%

100%

Central

Granted

E29/1001

100%

100%

South

Granted

E29/1002

100%

100%

West

Granted

E29/1005

100%

100%

West

Application

Application

E29/1069

100%

Lake Noondie

North

Granted

E57/1062

100%

100%

Central

Granted

E57/1063

100%

100%

South

Granted

E57/1064

100%

100%

West

Granted

E57/1065

100%

100%

East

Granted

E36/932

100%

100%

Lake Barlee

North

Granted

E30/495

100%

100%

Central

Granted

E30/496

100%

100%

South

Granted

E77/2441

100%

100%

Lake Raeside

North

Granted

E37/1305

100%

100%

Lake Austin

North

Application

E21/205

100%

100%

West

Application

E21/206

100%

100%

East

Application

E58/529

100%

100%

South

Application

E58/530

100%

100%

South West

Application

E58/531

100%

100%

Lake Moore

Granted

E59/2344

100%

100%

Northern Territory

Lake Lewis

South

Granted

EL 29787

100%

100%

North

Granted

EL 29903

100%

100%

 

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Salt Lake Potash Limited

ABN

Quarter ended (“current quarter”)

98 117 085 748

31 March 2019

Consolidated statement of cash flows

Current quarter $A’000

Year to date              (9 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(2,235)

(5,489)

(a)   exploration & evaluation

(b)   development

(1,129)

(1,129)

(c)   production

(d)   staff costs

(1,100)

(2,573)

(e)   administration and corporate costs

(458)

(965)

1.3

Dividends received (see note 3)

1.4

Interest received

62

115

1.5

Interest and other costs of finance paid

1.6

Income taxes paid

1.7

Research and development refunds

1.8

Other (provide details if material)
– Business Development

(254)

(780)

1.9

Net cash from / (used in) operating activities

(5,114)

(10,821)

2.

Cash flows from investing activities

(56)

(315)

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.2

Proceeds from the disposal of:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

2.6

Net cash from / (used in) investing activities

(56)

(315)

3.

Cash flows from financing activities

13,000

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

3.3

Proceeds from exercise of share options

3.4

Transaction costs related to issues of shares, convertible notes or options

(30)

(745)

3.5

Proceeds from borrowings

3.6

Repayment of borrowings

3.7

Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

3.10

Net cash from / (used in) financing activities

(30)

12,255

4.

Net increase / (decrease) in cash and cash equivalents for the period

12,028

5,709

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(5,114)

(10,821)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(56)

(315)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

(30)

12,255

4.5

Effect of movement in exchange rates on cash held

4.6

Cash and cash equivalents at end of period

6,828

6,828

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

1,635

2,901

5.2

Call deposits

5,193

9,127

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

6,828

12,028

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

(169)

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments include salaries, director and consulting fees, superannuation and provision of corporate, administration services, and a fully serviced office.

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Not applicable.

8.

Financing facilities available
Add notes as necessary for an understanding of the position

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

8.2

Credit standby arrangements

8.3

Other (please specify)

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Not applicable

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

2,500

9.2

Development

2,000

9.3

Production

9.4

Staff costs

1,500

9.5

Administration and corporate costs

400

9.6

Other (provide details if material)
– Business Development

– Exercise of Unlisted Options


100
(300)

9.7

Total estimated cash outflows

6,200

10.

Changes in tenements
(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

Refer to Appendix 1

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Sign here:         ……………………………………………………                        Date: 30 April 2019

(Director/Company secretary)

Print name:       Clint McGhie

Notes

1.       The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.       If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.       Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Salt Lake Potash #SO4 – Investor Presentation 2019

Salt Lake Potash #SO4 – Investor Presentation March 2019

Salt Lake Potash aims to produce premium Sulphate of Potash via the Brine Process, which is clean, green and energy efficient.

The presentation explains the differences between the Mannheim Process and the Brine Process. Link to the presentation here.

Salt Lake Potash #SO4 – Jo Battershill discusses the new commercial scale Sulphate of Potash Evaporation Ponds on the Vox Markets podcast

Vox Markets podcast – Jo Battershill, Corporate Executive of Salt Lake Potash #SO4 and Justin Waite discuss why the start of the construction on Australia’s First Commercial Scale Sulphate of Potash Evaporation Ponds is significant. Interview starts at 10 minutes 57 seconds.

Salt Lake Potash #SO4 -Construction Begins on Australia’s First Commercial Scale SOP Evaporation Ponds

SALT LAKE POTASH LIMITED

 

Construction Begins on Australia’s First Commercial Scale SOP Evaporation Ponds

 

Highlights:

  • Following receipt of the final approval from the Department of Water and Environmental Regulation (DWER), construction and operation of the First Phase of Lake Way Evaporation Ponds (Lake Way Ponds) at Wiluna, Western Australia has begun
  • Site support infrastructure for construction of the Lake Way Ponds is in place
  • The Lake Way Ponds will be the first Commercial Scale on-lake Sulphate of Potash (SOP) evaporation ponds in Australia. The first phase will enable de-watering of the Lake Way Williamson Pit that contains the highest grade brine resource in Australia
  • The initial ponds will have the capacity to hold the Measured Resource of 1.2GL of Williamson Pit brine at an average SOP grade 25kg/m3 which contains an equivalent of 32,000 tonnes premium SOP
  • The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash’s pathway to first production of SOP at Lake Way

Salt Lake Potash Limited (Salt Lake Potash or the Company) is pleased to announce that all permits have been received from the Department of Water and Environmental Regulation (DWER) for the Lake Way Ponds at Lake Way and construction has now commenced.   

Salt Lake Potash’s Chief Executive Officer, Mr Tony Swiericzuk said: “It is a very exciting time for Salt Lake Potash as we begin construction on Australia’s first commercial scale on-lake evaporation pond system.

This is a key milestone for not only Salt Lake Potash but also for the creation of the new SOP industry within Australia.

We will continue to progress works at Lake Way on both the construction of the first phase of evaporation ponds and also on the exploration of the “whole of lake” development options which we believe will underpin a globally significant SOP operation.”

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

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 754 036 6000

Colin Aaronson/Richard Tonthat/
Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint Broker)

Tel: +44 (0) 20 7468 7967

 

Background

Salt Lake Potash’s immediate focus is on the rapid development of the Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia. Lake Way’s location and logistical advantages make it the ideal location for the Company’s first SOP operation.

Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine. The Company’s Memorandum of Understanding with Blackham (see ASX Announcement dated 12 March 2018) allows for an expedited path to development at Lake Way.

Lake Way Evaporation Ponds – Overview

The Company has now received final approval from DWER for the construction and operation of the initial evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

Site support infrastructure at Lake Way has been installed enabling an immediate start on the construction works. 

Salt Lake Potash is constructing Australia’s first commercial scale on-lake evaporation ponds for a Sulphate of Potash (SOP) project at Lake Way. The initial ponds will consist of:

·      Two evaporation ponds:

(i)   Kainite Harvest Pond 500m x 500m (25 Ha); and

(ii)   Halite Pond 2,000m x 500m (100 Ha);

       ·      A 2km long and 4m deep trench will also be constructed running parallel to the ponds which will provide additional
brine feed into the pond network;

       ·      A 1.4km causeway from the Williamson Pit to the Kainite Harvest Pond; and

       ·      Associated piping and pumping infrastructure.

Design

The design of the evaporation ponds has been led by Knight Piesold, a leading global engineering and consulting firm with extensive experience in evaporation pond design.

Both evaporation ponds will include 2m high perimeter berms with internal baffles to extend the flow path of the brine movement within the pond to optimise the evaporation process.

Construction

Salt Lake Potash is undertaking a wet hire and self-perform model for the construction of the Lake Way Ponds. This construction model allows fast track mobilisation and execution of the works, whilst providing the Company with critical hands on experience allowing testing and validating of all design criteria to de-risk the future on-lake construction.

The construction works for the pond berms involves the stripping of the sandy evaporite layer of material on the lake’s surface. A key trench will then be constructed at the upstream toe of the embankment. An excavator will borrow lakebed clays from adjacent to the embankment and spread the material within the embankment footprint to form the pond berm.

The fill will be progressively spread, air dried, rotated and mixed to bring the moisture content to an optimum level. Dewatering of the borrow pits will be conducted throughout the construction process to manage saturation levels of the fill.

The works are being completed with a number of specialized pieces of civil earthmoving equipment suited to the unique conditions, including amphibious excavators and low ground pressure equipment.

The Company has also established support infrastructure on Lake Way, comprising a site office, crib room, and full mechanical workshop with canopy capable of undertaking repairs to our fleet of equipment onsite without the need for demobilization to external repair facilities.

The initial Lake Way ponds will have a volume of 1.8GL which will be capable of capturing the total Williamson Pit Measured Brine Resource (1.2GL @ 25kg/m3 SOP equivalent).

On-going Work Program

The construction of the initial Lake Way ponds is planned to be completed by the end of Q2 2019. The de-watering of the 1.2GL of Williamson Pit brine is expected to commence towards the end of Q2 2019.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

Competent Person Statement

The information in this Announcement that relates to Mineral Resources is extracted from the report entitled ‘Scoping Study for Low Capex, High Margin Demonstration Plant at Lake Way’ dated 31 July 2018. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member of the Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Potash a “critical mineral” – MiningNewsNet

A great read from , labelling Potash a “critical mineral”.

We have all been going gaga in recent months over critical minerals such as lithium and cobalt but MiningNewsNet have importantly drawn attention to Potash as another critical mineral worthy of attention. Potash refers to mined and manufactured salts that contain potassium in water-soluble form. The mineral is critical thanks to it’s use as a fertiliser in crop production

In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. Sulphate of Potash (SOP) is the premium source of potassium (macro-nutrient) favoured by high value, chloride intolerant crops.

Read the full story here:  

Salt Lake Potash #SO4 announces a A$13.0m Placement to Institutional & Sophisticated Investors to Fund Project Development

Salt Lake Potash Limited (the Company or Salt Lake) is pleased to announce that it has received strong commitments from both existing and new institutional and sophisticated investors in Australia and overseas to subscribe for 31.0 million new ordinary shares of the Company (Ordinary Shares), to raise gross proceeds of $13,000,000 (Placement). There was very strong demand for the Placement, an endorsement of the recent appointment of Tony Swiericzuk as CEO and also of the Company’s world class Sulphate of Potash project.

Proceeds from the Placement will be used to fund construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibility studies, and general working capital.

The cornerstone investor for the Placement is a significant international investment fund. Directors and senior management intend to subscribe for a total of 2.4 million shares in the Placement, including 952,381 shares by the CEO, Mr Tony Swiericzuk, and 750,000 shares by the Company’s Chairman, Mr Ian Middlemas, which will be issued subject to shareholder approval.

Commenting on the Placement, SO4’s CEO, Tony Swiericzuk, said: “We are very pleased to have received such strong support from new and existing shareholders to fund the construction of the initial on-lake infrastructure at Lake Way. These activities are on the critical path to enabling SO4 to become the first Australian commercial producer of SOP in a global sector with outstanding potential. This strong support from investors endorses our view that the Goldfields Salt Lakes Project has enormous potential for value creation and we now look forward to rapidly delivering on this potential for all shareholders and stakeholders.”

Argonaut Securities Pty Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Manager to the Placement.

The issue price of A$0.42 represents a 13.4% discount to the last closing price of $0.485 on ASX.

The Placement will be completed in two tranches as follows:

(a)      29,250,000 shares will be issued on 16 November 2018 under Listing Rule 7.1 (11,745,041 shares) and Listing Rule 7.1A (17,504,959 shares).  Following the issue of these shares the Company will have 7,612,398 remaining issue capacity under Listing Rule 7.1 and no remaining issue capacity under Listing Rule 7.1A.

(b)      1,702,381 shares intended to be subscribed for by Directors will be issued on or about Thursday 20 December 2018 subject to shareholder approval. A notice of general meeting will be sent to shareholders shortly.

Related Party transaction

The proposed participation in the Placement by Tony Swiericzuk, and Ian Middlemas constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The independent directors, having consulted the Company’s nominated adviser, Grant Thornton UK LLP, consider that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

Settlement and dealings

Application will be made to the AIM Market of the London Stock Exchange (“AIM”) for 29,250,000 Ordinary Shares, pursuant to the Placement, which rank pari passu with the Company’s existing issued Ordinary Shares, to be admitted to trading. Dealings on AIM are expected to commence at 8:00am on or around 16 November 2018 (“Admission”).

Total Voting Rights

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (“DTRs”), following Admission, Salt Lake will have 204,299,596 Ordinary Shares in issue with voting rights attached. Salt Lake holds no shares in treasury. This figure of 204,299,596 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

Information required under ASX Listing Rule 3.10.5A:

(a)      Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 9.1%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is 6.3% and the total dilution to existing shareholders is 14.3%. Details regarding the participation of existing and new shareholders is not able to be determined yet and will be provided at completion;

(b)      The Company will issue 17,504,959 shares under Listing Rule 7.1A because the Placement was considered to be a more efficient mechanism for raising funds. The Placement did not expose the Company to additional costs, a protracted process and market volatility that may have been experienced with a pro-rata issue or other type of issue in which existing ordinary shareholders would have been eligible to participate;

(c)      No underwriting arrangements are in place for the Placement under rule 7.1A; and

(d)      A fee of up to 6% may be paid to the Brokers/Advisors in connection with the Placement under rule 7.1A.

The voluntary halt of trading of the Company’s shares on ASX was lifted prior to the opening of trade on 9 November 2018, following an announcement to the market regarding the above. 

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

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement. 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

A new agricultural revolution is underway and Salt Lake Potash #SO4 is at the forefront.

By 2050:
30% increase in global population
70% increase in food demand
14% reduction in arable land
81% increase in crop yields required
A new agricultural revolution is underway and Salt Lake Potash #SO4 is at the forefront.

Brand CEO Alan Green talks Salt Lake Potash #SO4, Vast Resources #VAST, ECR Minerals #ECR & FairFX #FFX on Vox Markets podcast

Brand CEO Alan Green discusses Salt Lake Potash #SO4, Vast Resources #VAST, ECR Minerals #ECR & FairFX #FFX with Justin Waite on Vox Markets podcast. The interview is 33 minutes in.

Align Research – New Salt Lake Potash #SO4 MoU with Sinofert highlights potential upside

Investors woke up to a cracking announcement from Salt Lake Potash (AIM:SO4) this morning concerning a Memorandum of Understanding (MOU) for an Offtake Agreement with the Chinese fertiliser giant Sinofert Holdings Limited. The MOU sets out the basis for the second Offtake Agreement for SO4’s potentially vast Goldfields Salt Lakes Project (GSLP) for an initial 8 year term, beginning in January 2020.

This latest Offtake Agreement will provide Sinofert with sales and offtake rights for up to 50% of ALL Sulphate of Potash (SOP) production from across all the nine vast lakes in Western Australia which comprise the GSLP. In all, GSLP hosts a drainable exploration target of over 150Mt of SOP.

Soon, SO4 is planning to begin the construction of the Demonstration Plant at GSLP to produce 50,000 tpa of high-quality SOP, with the production being distributed by a handful of global distribution partners. Once the Demonstration Plant is up and running, the team has well-developed plans to progressively expand production across a number of the lakes within the GSLP. This is SO4’s second offtake agreement, having already entered into an agreement with Mitsubishi Corp for sales and offtake rights to 50% of the SOP production from the 50,000 tpa Demonstration Plant.

It worth taking a closer look at Sinofert which is the largest fertiliser company in China, with businesses encompassing the complete fertiliser industry chain. In all, this well-established fertiliser giant handles something like 13Mtpa of fertilisers as well as being the biggest fertiliser importer into China. Hong Kong-listed Sinofert is capitalised at over US$1 billion and is majority-owned by Sinochem Corporation, a Chinese State Owned Enterprise.

This deal serves to underline the viability and the economics of SO4’s vast high-grade SOP brine projects in Western Australia. Investors should realise that SOP represents a premium sustainable potash fertiliser which currently sells at more than double the price of the more commonly used MOP. With SOP being a high value fertiliser which is increasing being favoured by global demographics and in the shift to high value speciality crops such as citrus, potatoes, nuts, strawberries, mangoes, tomatoes, coffee, tobacco, spinach and peas.

Read the full Align research article here

Salt Lake Potash #SO4 and Chinese Fertiliser company Sinofert enter MOU for Long Term Offtake Arrangement

Salt Lake Potash (the Company) is pleased to announce that the Company has executed a Memorandum of Understanding (MOU) with the leading fertiliser distribution company in China, Sinofert Holdings Limited (Sinofert), setting out the basis for the second Offtake Agreement for the Goldfields Salt Lakes Project (GSLP).

The Offtake Agreement will provide Sinofert with sales and offtake rights for up to 50% of all Sulphate of Potash (SOP) production from the GSLP, for distribution into China. The initial term is for 8 years, from 1 January 2020.

Salt Lake Potash plans to shortly commence initial construction of a Demonstration Plant at the GSLP producing up to 50,000tpa of high quality SOP, with plans to distribute production through a small number of global distribution partnerships.  Subsequent to the Demonstration Plant, the Company plans to progressively expand production across a number of lakes in the GSLP.

The Sinofert MOU is non-binding and sets out the key terms for a subsequent formal Offtake Agreement expected to be completed before the commencement of the initial term on 1 January 2020. As well as quantities and target markets, the MOU’s other terms include:

•           Market pricing and commission mechanisms;

•           Specifications and delivery parameters; and

•           Sinochem to provide strategic advice on marketing within China.

About Sinofert

Sinofert is China’s leading fertiliser supplier and distributor, covering the whole industry chain of resource, R&D, production, distribution, and agrochemical services. Sinofert handles 13 mt of fertilisers each year and has over 60 years experience in fertiliser production and distribution. Sinofert is listed on the Hong Kong Stock Exchange and is majority owned by Sinochem Corporation, a key Chinese State Owned Corporation.

The Company has previously entered into an Offtake Agreement with Mitsubishi Australia Limited and Mitsubishi Corporation, with sales and offtake rights for up to 50% of the SOP production from a Demonstration Plant at the GSLP.

Salt Lake Potash CEO Matt Syme said: “We are very pleased to have taken this important step to partner with Sinofert in further establishing distribution channels for the Goldfields Salt Lakes Project. Our model of distribution partnerships is vital for what is essentially an export Project and Sinofert is the leading participant in the world’s largest fertiliser market, where more than half of the world’s SOP is both produced and consumed.”

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

Matt Syme/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP
(Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

Production Target

The Lake Way Demonstration Plant Production Target stated in this announcement is based on the Company’s Scoping Study as released to ASX and AIM on 31 July 2018. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 and 5.17 was included in the Company’s Announcement released on 31 July 2018. The Company confirms that the material assumptions underpinning the Production Target referenced in the 31 July 2018 release continue to apply and have not materially changed.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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