SO4.L Share News (SO4)

(Sharecast News) - Salt Lake Potash on Friday agreed to examine cost sharing at Lake Wells in Western Australia with neighbour Australian Potash Limited.The two company's projects at Lake Wells will proceed "independently in parallel" with the study into the merits of developing aspects of their respective projects together, so it should have no impact on their respective timelines.Under the memorandum of understanding, the study itself will be performed by independent engineers in order to avoid interference with company business.At this stage both companies anticipate substantial Capex and Opex benefits from some level of infrastructure sharing, with further benefits arising from shared or common evaporation and salt processing facilities.Both firm's projects have commonalities including access roads, proximity to the Leonora rail terminals, and potential power and fresh water solutions."Both projects have very similar brine chemistry given they are essentially hosted on the same paleochannel. Naturally they will also experience the same climatic conditions, meaning the process flowsheets for each project should be very similar. This offers the opportunity for potential additional savings by a co-operative arrangement," said a statement from Salt Lake.Salt Lake Potash's shares were unchanged at 26.00p at 1018 BST.