Global Resources Corporation (ASX:GRM) may trade higher after acquiring all technical data relating to its Mackay Potash Project in Western Australia from Reward Minerals (ASX:RWD).
An extensive database of exploration and development information has been generated by Reward during its activities on the Mackay Project area between 2007 and 2014.
The key data relates to the drilling results and associated brine analyses obtained from a drilling program undertaken in September 2009.
As consideration, Reward will be issued 7.5 million shares in GRM. GRM last traded at $0.17.
GRM will now expand its review to include a detailed evaluation of this new data, and intends to use the data in calculating a potash resource estimate.
In September 2009, Reward undertook a drilling program on Lake Mackay to test the lake sediments for sulphate of potash.
Drilling was limited to a depth of only 4, metres, with vigorous brine flow encountered in all but two of the 24 holes drilled.
In June, GRM raised $710,000 at $0.06 per share. Since then the price has climbed to as high as $0.20, and last traded at $0.17.
Recent exploration has highlighted the Pilbara region’s potential to emerge as a major potash province, particularly prospective for the higher-priced sulphate of potash.
The projects are located in a very hot and dry environment, which is ideal for the low cost solar evaporation method of potash extraction.
In addition, the area is situated close to sealed roads and other established infrastructure, which service the nearby Telfer Mine.
Sulphate of potash is highly concentrated with existing suppliers, and supply is struggling to meet current demand.
Accordingly, Global expects that sulphate of potash resources in Western Australia will become increasingly strategic.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.