Agrimin Ltd (ASX:AMN) has signed a native title agreement for its Mackay Sulphate of Potash (SOP) project in Western Australia with the Kiwirrkurra people, the recognised native title holders of the land.
The agreement has been signed with the Tjamu Tjamu Aboriginal Corporation, the registered body corporate for the Kiwirrkurra people.
Agrimin has now received heritage clearance for an on-lake area of 2,384 square kilometres, which covers almost the entire area containing SOP mineral resources within the Kiwirrkurra determination.
Critically, the agreement is a major approval that provides consent for a mining lease to be granted.
The agreement contains a range of financial and non-financial terms which remain confidential in nature.
Agrimin has agreed to issue 1 million shares to Tjamu Tjamu, escrowed for three years, as part of the terms.
Mackay SOP project is situated on Lake Mackay, the largest undeveloped SOP-bearing salt lake in the world.
Agrimin is aiming to be a global supplier of high quality SOP fertiliser to both traditional and emerging value-added markets.
The company had completed a positive scoping study for the project in August 2016.
This indicated SOP production of 370,000 tonnes per year over a 20 year life at an average total cash cost of US$256 per tonne.