Parkway Minerals
Parkway Minerals (ASX:PWN) aims to extract potassium - for the production of potash - from one of the world's largest greensand deposits.
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Potash West selling German potash project to Arunta Resources
Potash West (ASX:PWN) has agreed to sell its East Exploration subsidiary, which has a 55% in the South Harz project in Thuringia, Central Germany, to Arunta Resources (ASX:AJR).
Its subsidiary Davenport Pty Ltd, which will hold the project, plans to list on the Australian Securities Exchange subject to raising at least $4 million and meeting regulatory requirements.
Both Potash West and Davenport shareholders will have priority entitlement in the capital raising.
The company will receive $250,000 as non-refundable option and exclusivity fees as well as 36,458,333 Davenport shares at listing price of $0.20 plus 67,708,334 performance shares, which will convert to ordinary shares on achieving pre-determined project milestones.
It will own about 28% of Daveport, subject to the amount raised.
Funding to be applied to drilling targets identified by Potash West in March 2015.
South Harz consists of the Küllstedt and Grafentonna licences. Kullstedt has an Exploration Target of 4 to 5 Billion tonnes of potash ore at a grade between 7 and 25% K2O.
Analysis
Potash West's sale of South Harz to Arunta Resources will allow the company to focus on its Dinner Hill project and extraction technologies while retaining a meaningful interest in the potash project.
Its shareholders will also have priority entitlement in Davenport's capital raising, giving them the opportunity to increase their exposure.
The company is currently carrying out feasibility studies of the Dinner Hill Phosphate Project.
Potash West had $1.5 million in cash as at 30th June 2015 and recently raised $1.8 million in an oversubscribed placement.
Other Parkway Minerals news
- Parkway Minerals granted US patent for its potassium extraction process
2018-05-31 - Parkway Minerals' shares up on back of increase in Davenport Resources' potash resource
2018-04-17 - Parkway Minerals leveraged to growing demand for fertiliser products
2018-03-06 - Parkway Minerals NL samples high grade potash at Lake Barlee
2017-05-30 - Parkway Minerals sees Davenport IPO as rare potash opportunity
2016-12-08
