Salt Lake tenement deal secured
An aspiring sulphate of potash producer has claimed more ground at its northern Goldfields project, striking a $10 million deal for a tenement package from a neighbouring gold producer.
Salt Lake Potash told shareholders yesterday it had agreed to acquire the Blackham Resources tenements at the northern end of its flagship Lake Way project, near Wiluna.
As part of the deal, the Tony Swiericzuk-headed company will secure access to power and process water rights with an option to acquire a key borefield for $3 million.
Blackham will receive $10 million through the deal, with a non-refundable $3 million paid on execution and the remaining $7 million upon completion.
Salt Lake Potash will place 10.58 million shares with investment management company Fidelity International at 70¢ each to raise $7.4 million, before costs, to fund majority of acquisition.
Blackham will retain the gold rights across the transferred tenements.
Shares in Salt Lake Potash were up 2.5¢, or 3.36 per cent, to 77¢ at the close of trading on yesterday.
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