Potash West Signs Term Sheet with East Exploration and Petratherm for the South Harz Project in Germany

 Potash West (OTC:PWNNY,ASX:PWN) has signed a binding term sheet with East Exploration Pty ltd and Petratherm Limited (ASX:PTR) for the South Harz Project in Germany. Potash West owns 55% of East Exploration Pty ltd, registered owner of the South Harz project, with the balance held privately. East Exploration shareholders will receive 55 million fully paid ordinary Petratherm shares, plus 110 million performance shares, which will convert to ordinary shares on achieving pre-determined project milestones.

As quoted in the press release:

Potash West own 55% of East Exploration Pty ltd (EE), with the balance held privately. EE is the registered owner of the South Harz project, comprising two exploration licences, Küllstedt and Grafentonna, in Thuringia, Central Germany. All owners have agreed to the sale, in return for shares in Petratherm.

EE shareholders will receive 55 million fully paid ordinary PTR shares, plus 110 million performance shares, which will convert to ordinary shares on achieving pre-determined project milestones. Potash West will receive 30.25 million shares, expected to be 26% of the recapitalized Petratherm.

South Harz Project

East Exploration holds exploration licences having an area of nearly 450km2 in the southwestern edge of the South Harz Potash District in central Germany (Figure 1). The Küllstedt Exploration Licence extends over 241km2 while the Gräfentonna Exploration Licence has an area of 216km2. Both licences are located in the northwestern part of the Federal State of Thuringia, bordering the city of Mühlhausen to the south ( figure 1).

East Exploration commissioned ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau GmbH (ERCOSPLAN) to carry out a review of all the geological data relating to the Küllstedt licence and to estimate an Exploration Target for the area. This was reported to ASX by Potash West (PWN) in an ASX release dated 4 March 2015. The ERCOSPLAN technical report is available on the PWN website

Potash West Managing Director, Patrick McManus, said:

This transaction is a major step forward for Potash West and our shareholders. The South Harz project will now have a focused, and well resourced team to take it forward.

Click here to read the Potash West NL (OTC:PWNNY,ASX:PWN) press release
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