(Alliance News) - Salt Lake Potash Ltd has acquired new tenements for its flagship Lake Way project in Australia, it said on Tuesday, for AUD10 million, or GBP5.6 million.
The tenements, located on the northern end of the Lake Way project, have been bought from Blackham Resources, and Salt Lake has also purchased the rights to process water from Blackham.
Blackham will retain gold rights on the tenements, Salt Lake added.
To fund the deal, Salt Lake will issue 10.6 million new shares at a price of AUD0.70 each, raising AUD7.4 million, with all the shares going to Fidelity International. Shares were down 0.6% in London Tuesday at 42.00 pence each, and closed 3.4% higher in Sydney on Tuesday at AUD0.77.
Salt Lake Chief Executive Tony Swiericzuk said: "This is an exceptional transaction for Salt Lake Potash that will provide significant benefits to the Lake Way project and further support the rapid progress towards first production.
"The acquisition will provide material value through capital and operating savings to Salt Lake Potash and also significantly de-risk the Lake Way project by providing ownership of tenements and further access to key infrastructure assets including water and power."
"Salt Lake Potash is delighted to continue the strong relationship we have built with Blackham and look forward to further developing the mutual opportunities that exist with our adjacent operations," he added.
The company also said Tuesday Non-Executive Director Matthew Syme has left the company to pursue other business opportunities. Syme was CEO at Salt Lake between 2015 and 2018.
