Salt Lake Potash Ltd (ASX:SO4)(LON:SO4) has completed the acquisition of a package of tenements and other key assets for the Lake Way Sulphate of Potash Project near Wiluna in WA’s northern goldfields.
Notably, the transaction is an important step in providing Salt Lake with certainty over tenure, timing and capital expenditure required to bring the Lake Way Sulphate of Potash Project into production.
Blackham tenements acquired
Salt Lake chief executive officer Tony Swiericzuk said: “We are very pleased to have completed the acquisition of key tenements and rights at Lake Way, further supporting the rapid progress being made towards first production.
“The acquisition provides material value through capital and operating savings to Salt Lake Potash.
“Transaction completion significantly de-risks the Lake Way Project by providing ownership of tenements and further access to key infrastructure assets including water and power.
“Salt Lake Potash looks forward to continuing the strong relationship built with Blackham and further developing the mutual opportunities that exist with our adjacent operations.
“This is an exciting time for Salt Lake Potash with the imminent release of the BFS and continued rapid development of the Project.”
Salt Lake and Blackham have been cooperating on their respective projects in the Wiluna/Lake Way region for the past 18 months.
Salt Lake Potash identified specific Blackham assets that would provide synergies for the Lake Way Project and material value to the company.
In July 2019, the two parties entered an agreement whereby Salt Lake Potash would acquire outright:
- the tenements owned by Blackham that sit on the northern end of Lake Way and to the east of the Goldfields Highway;
- access and rights to process water from Blackham with an option to acquire a key borefield which will support the Lake Way Project.
Bankable feasibility study results imminent
Under the agreement, which was subject to a number of conditions precedent, Blackham agreed to provide immediate access to process water, and consent to the grant of new tenure over its tenements to enable Salt Lake to advance early works including camps and water infrastructure.
The remaining conditions precedent have now been satisfied and the agreement has been completed.
Salt Lake is currently finalising its Bankable Feasibility Study (BFS) for the Lake Way Project, and the results of the BFS are expected to be released shortly.