LONDON (Alliance News) - Salt Lake Potash Ltd on Monday said it has signed a deal with Blackham Resources Ltd for the development of the Lake Way project in Western Australia.
Salt Lake Potash will, under the split commodity and access agreement, acquire the brine rights over Blackham's tenements at Lake Way, while Blackham acquires the gold rights to Salt Lake Potash's Lake Way tenements.
Salt Lake Potash will receive a 2% royalty on all gold production from the Salt Lake Potash tenements, while Blackham receives a 4% royalty on all brine production from the Blackham tenements.
Salt Lake Potash must make a rehabilitation liability payment to Blackham, totalling AUD500,000, or GBP272,463, by June 30. This is deductible from future brine royalties.
Salt Lake Potash must complete its de-watering of the Williamson pit at Lake Way, construct its sulphate of potash processing plant by the end of June 2020, and commence first commercial production from the plant by the end of 2021.
Salt Lake Potash began constructing the first phase of the evaporation pounds at Lake Way in March. This will allow for the first stage of the Williamson pit dewatering.
Construction on the evaporation ponds is moving into 24 hour operations and is on target for the second quarter of 2019. The de-watering will commence thereafter.
Shares in Salt Lake Potash were flat at 30.00 pence on Monday afternoon.
