Australian Potash Ltd (ASX:APC) continues to look at ways to canvass development funding opportunities to bring the Lake Wells Sulphate of Potash Project (LSOP) into development.
With several companies and organisations interested in working with APC, the company which owns a 100% interest in the LSOP, about 500 kilometres northeast of Kalgoorlie, in Western Australia's Eastern Goldfields, has created a data room to share information.
APC is finalising pre-development plans to start construction, with first production from the LSOP scheduled for 24 to 27 months from a Final Investment Decision.
Once production starts, the company’s suite of high-quality, premium SOP products from the LSOP will be marketed under the K-BriteTM brand.
Acquisition interest
APC has two other projects - the Lakewell Gold Project and The Laverton Downs Project - the latter of which has garnered interest for a possible acquisition.
The Laverton Downs Project (LDP) is just five kilometres north of Laverton and prospective for gold and nickel sulphide mineralisation.
It is made up of six tenements in the name of Laverton Downs Project Pty Ltd, a wholly-owned subsidiary of Australian Potash Limited.
APC has signed a binding Letter of Intent (LOI) with Maverick Minerals Pty Ltd for the sale. Note, Maverick is yet to be listed on the ASX but intends to conduct an IPO to do so.
The key terms of the LOI are:
- upon execution of a formal sale and purchase agreement, APC will receive $10,000 in cash;
- upon completion of the acquisition, APC will receive $200,000 in cash, subject to demonstration of compliance with all prescribed expenditure conditions in respect of the tenements
- upon completion of the acquisition, APC will be reimbursed all costs incurred in relation to keeping the tenements in good standing between entry into a formal agreement and completion of the acquisition less $10,000 and subject to demonstration of compliance with all prescribed expenditure conditions in respect of the tenements; and
- APC receiving a royalty equal to 1.5% of the net smelter return generated in respect of the minerals extracted from the tenements.
A three-month due diligence period from execution of the agreement is now being conducted, with the acquisition also hinging on Maverick completing a capital raising of at least $4 million and receiving conditional approval for admission to the ASX by February 1, 2024.