Australian Potash Enters Agreement with Salt Lake Potash

Australian Potash Limited (ASX:APC) has announced an agreement with its neighbour company at Lake Wells, Salt Lake Potash (ASX:SO4), to  study the economic merits of developing certain infrastructure together.

Both explorers are invested in development projects in Australia.

As quoted from the press release:

Highlights:

• Salt Lake Potash and Australian Potash have entered into a memorandum of understanding and cooperation agreement to study the potentially very substantial benefits of sharing infrastructure and other costs at Lake Wells
• The companies will conduct a joint study into the merits of developing aspects of their respective Lake Wells projects together
• The study will initially focus on a shared costs model around infrastructure developments
• The study will also address at a high-level the potential for cost sharing on common evaporation and salt processing developments
• Both companies’ projects at Lake Wells will proceed independently in parallel with the Study with no impact on either company’s timelines

Salt Lake Potash Limited  and Australian Potash Limited  are pleased to advise that the companies have entered into a memorandum of understanding and cooperation agreement to undertake a joint study of the potential benefits of development cost sharing for each company’s project developments at Lake Wells. The companies’ substantial project holdings at Lake Wells are contiguous with many common infrastructure elements, including access roads, proximity to the Leonora rail terminals, and potential power and fresh water solutions. Both companies anticipate substantial potential Capex and Opex benefits from some level of infrastructure sharing, with further potential benefits arising from shared or common evaporation and salt processing facilities.

Click here to read the full announcement