Australian Potash Limited has provided an update regarding several corporate matters.
As noted in the company’s Quarterly Activities Report for the period ending 31 December 2022, the Board of APC continue to canvass development funding opportunities to bring the Lake Wells Sulphate of Potash Project into development. A dataroom has been made available to various parties who have expressed interest in working with APC in this respect and the company continues to pursue these opportunities.
In relation to its other projects, APC recently received an approach from a party interested in acquiring the Laverton Downs Project (LDP), located five km north of Laverton and prospective for gold and nickel sulphide mineralisation. The LDP comprises six tenements (E38/2724, E38/3014, E38/3132, E38/3402, E38/3403 and E38/3404) (tenements) in the name of Laverton Downs Project Pty Ltd, a wholly owned subsidiary of Australian Potash Limited.
The company has now signed a binding Letter of Intent (LOI) for the sale and purchase of the LDP with Maverick Minerals Pty Ltd, a newly incorporated Australian entity which intends to conduct an IPO and list on the ASX (Maverick). The key terms of the LOI are:
- Upon execution of a formal sale and purchase agreement, APC will receive US$10 000 in cash.
- Upon completion of the acquisition, APC will receive US$200 000 in cash, subject to demonstration of compliance with all prescribed expenditure conditions in respect of the tenements.
- Upon completion of the acquisition, APC will be reimbursed all costs incurred in relation to keeping the tenements in good standing between entry into a formal agreement and completion of the acquisition less U$10 000 and subject to demonstration of compliance with all prescribed expenditure conditions in respect of the tenements.
- APC receiving a royalty equal to 1.5% of the net smelter return generated in respect of the minerals, extracted from the tenements.
The transaction is conditional upon a three-month due diligence period from execution of the formal agreement and Maverick completing a capital raising of at least US$4million and receiving conditional approval for admission to the ASX Official List by 01 February 2024.
Read the article online at: https://www.worldfertilizer.com/potash/28022023/australian-potash-limited-shares-corporate-update/
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