Salt Lake Potash Limited Completion of Acquisition of Tenement Package (1117P)
08 October 2019 - 6:15PM
UK Regulatory
TIDMSO4
RNS Number : 1117P
Salt Lake Potash Limited
08 October 2019
8 October 2019 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
SALT LAKE POTASH COMPLETES ACQUISITION OF STRATEGIC
LAKE WAY TENEMENT PACKAGE
-----------------------------------------------------
Highlights
Ø Completion of acquisition of strategic package of Lake Way
tenements and access to process water and power rights
Ø Transaction provides security of tenure and significant
synergies for the Lake Way Project including substantial capital
and operating cost savings
Salt Lake Potash Limited (ASX: SO4) (Salt Lake Potash or the
Company) is pleased to announce that the conditions precedent to
the Sales Agreement (Agreement) with Blackham Resources Limited
(Blackham), announced on 23 July 2019, have been satisfied and the
acquisition of a package of tenements and other key assets for the
Lake Way Project (Transaction) has completed. The Transaction is
another important step in providing the Company with certainty over
tenure, timing and capital expenditure required to bring the Lake
Way Sulphate of Potash Project near Wiluna in Western Australia's
northern goldfields into production.
Salt Lake Potash 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 Salt Lake Potash.
In July 2019, the two parties entered the 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.
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 Potash to advance early works including camps and
water infrastructure. The remaining conditions precedent have now
been satisfied and the Agreement has completed.
The Brine Royalty granted to Blackham as part of the Split
Commodity Agreement will be extinguished effective 30 June 2020.
Salt Lake Potash has paid Blackham the balance of the
consideration, being A$7 million. Further details on the
Transaction are available in the Company's Announcement dated 23
July 2019.
Salt Lake Potash is finalising its Bankable Feasibility Study
(BFS) for the Lake Way Project, and the results of the BFS are
expected to be released shortly.
Salt Lake Potash's 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."
For further information please visit www.so4.com.au or
contact:
Tony Swiericzuk/Clint McGhie Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson/Richard Tonthat/Ben Grant Thornton UK LLP (Nominated Tel: +44 (0) 20 7383
Roberts Adviser) 5100
Derrick Lee/Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220
6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907
8500
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.
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.
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
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