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Potash West NL begins marketing Dinner Hill to fertiliser project partners

Published: 14:00 05 Jul 2016 AEST

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Potash West NL (ASX:PWN) through its recent agreement with FTI Consulting will reach out to fertiliser project partners to develop the Dinner Hill phosphate resource.

FTI has prepared a detailed marketing package for potential financiers with interests in the agricultural commodity sector.

The Dinner Hill Project, serviced by well-developed infrastructure and strategically located in Western Australia’s agricultural heartland, is one of the Asia Pacific regions most significant phosphate resources.

Patrick McManus, managing director, commented:

“Dinner Hill is the flagship project of our Dandaragan Trough province.  It contains significant resources of both phosphate and potash.

“Scoping studies indicate a robust development plan of:

- Stage 1, production of single superphosphate, using established technology; and
- Stage 2, production of potash, phosphoric acid, and other products, using K-Max technology.

“In production, Dinner Hill will be a producer of fertiliser for many decades.

“Agriculture, locally and regionally, import the bulk of their phosphate and potash requirements, Dinner Hill will provide a very long-term supply from a stable, low sovereign risk location.”


FTI Consulting

FTI Consulting Inc (NYSE:FCN) is headquartered in Washington DC, with over 4,400 employees located in 26 countries.

It is focused on the strategic, operational, financial and capital needs of businesses around the world.

During March, Potash West signed an agreement with FTI to attract a project partner to develop the Dinner Hill superphosphate project.

FTI recently completed a detailed review of the project parameters and financial models reinforcing their view that Dinner Hill represents an attractive investment opportunity.


Analysis

By moving forward to attract a fertiliser project partner engagement stage, FTI has aligned itself with the project’s feasibility, having completed their own due diligence.

Securing project partners and investors to support the development of the Dinner Hill Project is a key step to unlocking value for Potash West and its shareholders.

The project is favourably located to service Asian and local markets and importantly, is in close proximity to infrastructure including rail and ports.

Recently, a research report was released by State One Stockbroking, rating Potash West a Speculative Buy and with a A$0.22 target price.

The company’s valuation of A$60 million represents a large premium to the <$10 million market cap with shares trading at $0.032.


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