Blackham Resources (ASX: BLK) has announced that it has agreed to sell its Lake Way tenements, cancel its brine royalty and provide certain water rights to Salt Lake Potash (ASX: SO4).

The deal will see Blackham receive AU$10 million cash, and it will retain certain gold mining rights for both those tenements and Salt Lake Potash’s neighbouring tenements.

As quoted from the press release:

The Lake Way transaction is an extension of the previously announced Split Commodity and Access Agreement between Blackham and Salt Lake Potash (ASX announcement dated 8 April 2019, BLK and SO4 Sign Split Commodity Agreement) (Split Commodity Agreement). The Lake Way Transaction is subject to various conditions, as set out below. Salt Lake Potash and Blackham have also identified a mutual opportunity for Salt Lake Potash to utilise part of the pre-strip material from Blackham’s proposed Williamson Pit development for the construction of the Salt Lake Potash’s on-lake evaporation ponds. Salt Lake Potash will contribute up to $10 million to the pre-strip of the Williamson open pit mine, allowing Blackham to expedite the mining of the Williamson open pit and also providing Salt Lake Potash with suitable construction material for its Lake Way Sulphate of Potash (“SOP”) project.

Blackham’s Executive Chairman, Mr Milan Jerkovic, stated “We are excited to have reached agreement with Salt Lake Potash on a mutually beneficial arrangement that enables Blackham to pursue its mining plans for Williamson, whilst also enabling Salt Lake Potash to develop its Lake Way SOP project. The Lake Way Transaction will strengthen Blackham’s balance sheet, lower its mining costs as it progresses its strategy associated with its Sulphide Expansion Project to unlock the large sulphide reserves and resources at Wiluna.”

Click here to read the full announcement