PERTH (miningweekly.com) – ASX-listed Salt Lake Potash has completed the acquisition of the Lake Way tenements from gold miner Blackham Resources.
The two companies in July this year struck a A$10-million agreement under which Salt Lake would acquire the Lake Way tenements, in Western Australia.
Blackham on Tuesday reported that in addition to the initial A$3-million cash deposit received from Salt Lake in July, the company has now received the final A$7-million cash payment.
Salt Lake will also contribute up to a further A$10-million to the pre-strip of the Williamson openpit mine, allowing Blackham to expedite mining of the Williamson openpit and providing Salt Lake with suitable construction material for the Lake Way sulphate of potash (SoP) project.
Blackham will retain the gold mining and exploration rights at the Lake Way tenements, with Salt Lake having priority in respect of certain cleared areas. Blackham’s gold rights will also extend to the Williamson and Carroll & Prior areas.
Blackham on Tuesday said that pre-production activities at the Williamson openpit operation has already commenced ahead of ore production in November. Williamson will be providing the baseload for Blackham’s free milling ore for the remainder of the 2020 financial year.
Meanwhile, Salt Lake told shareholders that it was finalising a bankable feasibility study for the Lake Way project, with the results expected shortly.
“We are very pleased to have completed the acquisition of key tenements and rights at Lake Way, further supporting the rapid progress being made towards first production,” said Salt Lake CEO Tony Swiericzuk.
“The acquisition provides material value through capital and operating savings to Salt Lake. Transaction completion significantly de-risks the Lake Way project by providing ownership of tenements and further access to key infrastructure assets including water and power.”