Fidelity Minerals Corp has agreed to increase its ownership of Greensands Australia Pty Ltd to 75% from 50%.
Fidelity initially announced its purchase of 50% of the company in February. The other 25% is being acquired by Lions Bay Capital Inc, which is the largest shareholder of Fidelity.
On March 16, Greensands Australia received an exploration license covering the Florina Greensand project in the Northern Territory, Australia. The project is comprised of a large, surficial deposit of the mineral glauconite, located 70 kilometers west of the regional town of Katherine.
Previous test work has shown the project to contain significant concentrations of potassium and phosphorous, the major chemical elementals for the production of potash and phosphate fertilizers, the company said.
Greensands Australia has filed patent applications covering a process to “activate” glauconite, which has the effect of greatly increasing glauconite solubility. The company believes this process has high strategic potential to render glauconite as feedstock for the production of organic potassium and phosphate fertilizers.
Fidelity issued 3 million ordinary common shares at $0.06 per share and agreed to fund 75% of stage one costs (an estimated A$187,500) and 75% of stage two costs (an estimated A$750,000).
Upon completion of the scoping study, Fidelity will issue an additional 3 million ordinary common shares. If the scoping study shows a pre-tax internal rate of return of over 19%, then the vendors will be entitled to a bonus payment of A$1 million (Fidelity’s share estimated would be an estimated $750,000).
Full details of the transaction can be found here.
Fidelity also said it remains committed to advancing its exploration efforts at the Las Huaquillas Project in Peru by completing drill permitting, environmental studies, and negotiating access to underground workings against the current political and social backdrop in Peru. It said it hopes to progress these items during the first half of 2023.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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