SALT LAKE POTASH COMPLETES ACQUISITION OF STRATEGIC LAKE WAY TENEMENT PACKAGE
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."
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 [email protected] or visit www.rns.com.
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