UPSA - it gets better the more you look11 Sep 2025 10:36
The company Universal Pozzolanic Silica Alumina Ltd (UPSA) was incorporated on 25th May 2023.
On 20th June 2023, UPSA acquired the extraction rights from Claystone International Pty Ltd (Claystone) to
extract up to 250 Million Metric Tons of pozzolanic silica sand deposits (PSA) from Claystone owned sites,
referred to as Lots 5-9, a specifically designated area referred to as Section Lease DP264346/7/ES01/23 and to
a depth agreed upon and known to have properties suitable to UPSA and its commercial requirements. These
are located at Gwydir Shire Council, Yammacoona Estates, County Burnett, Warialda, Northern NSW,
Australia for 99 years. Claystone's total reserves of PSA are in the order of 1,500 million metric tons.
UPSA plans to extract the Sand and make it available globally for use in the manufacture of Green Concrete
and other appropriate applications.
Claystone has commissioned independent Competent Persons Reports and valuations on, the lots under its
ownership, Lots 5 & 7 (within the DP coordinates) that shows proven reserves of 101.1 Million Tons of Sand
and 109 Million tons respectively out of which 89 Million tons of Sand has been considered for valuation at a
depth of 80 meters. The Section Lease resource in-ground has been valued at AUS$3,045 Million,an average
of Aus$15.74 per ton, which is the per ton value that the company has adopted in terms of its reserves.
UPSA has the right to extract up to 250 Million tons and at our conservative value of Aus$15.74 per ton, the
total valuation of UPSA's 'proven reserves' can be stated at Aus$3,935 Million.
As per the extraction rights, UPSA has agreed to pay Claystone an annual extraction royalty payment
equivalent to 3% of the FOB value achieved by UPSA in any calendar year and such royalty is to be paid
quarterly in arrears throughout the term where UPSA has the rights to extract.
The Directors are of the view that a discount should be applied to the derived valuation of Aus$3,935 Million
and a discount of 30% is reasonable and hence the value of UPSA's mining rights at (Aus$3,935 Million x
70%) which equates to Aus $2,755 Million, and GDP of £1,439,999 at the prevailing exchange rate on 31
October 2023.
The company is presently formulating its strategy and considering funding options to fulfill its plans to be a
leading global supplier of the Sand.
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