Australian Potash Ltd (ASX:APC) has highlighted the $500 million commitment from Federal and State governments for the final upgrade program to Great Central Road, which will include the logistics route for its flagship Lake Wells Sulphate of Potash Project (LSOP).
The governments will co-fund the sealing of the final 736 kilometres of the world’s longest shortcut - the Great Central Road, which is known locally as the ‘Outback Way’.
Great Central Road extends east from Laverton to the WA-NT border and is integral to the logistics solution APC has designed with its project logistics provider.
The LSOP is accessed via 80 kilometres of the Great Central Road and the Lake Wells Road.
Enormous benefit
APL managing director and CEO Matt Shackleton said: “One of the enduring features of the LSOP is its location relative to road and rail infrastructure.
“The additional cost of developing integral logistics infrastructure would weigh heavily on the economics of most new project developments, and we are fortunate that we do not face that challenge.
“The State and Federal governments’ commitment to completing this vital piece of infrastructure lends an enormous benefit to our SOP project, providing as it does a further 80 kilometres of sealed, high-quality road.
“The positive impact on the operating economics of the road haul into Leonora, where we will take advantage of the rail, and into Geraldton, will be material.
Laverton Training Centre
“The Laverton Training Centre, a not-for-profit initiative of APC, is scheduled to commence training its first cohort of trainees at the end of February, and we look forward to working closely with the Great Central Road sealing contractors to discuss employment opportunities over the course of the next several months.”
The WA State Government statement can be found here.
Capital raising
In December, the company took its recent capital raising proceeds to $12.477 million after completing a share purchase plan to further advance the flagship Lake Wells Sulphate of Potash Project in WA.
SPP applications were received from eligible shareholders for a total of $477,000, representing 5,962,500 fully paid ordinary shares at $0.08 per share, the same issue price as the placement that raised $12 million.
It is anticipated that the funds will be primarily used to progress borefield development activities and associated earthworks at the LSOP, together with working capital.