BC Iron and Kalium Lakes have entered a joint venture (JV) agreement to develop Carnegie Potash Project in Western Australia.
Kalium holds 100% interest in the project. Under the agreement, BC Iron can earn up to a 50% interest in the Carnegie Project by funding exploration and development expenditure across several stages.
Go deeper with GlobalData
Kalium will be the manager of the JV.
BC Iron managing director Alwyn Vorster said: “Through this agreement with Kalium, BC Iron has gained exposure to a highly prospective project in an agricultural commodity with attractive long-term dynamics.
“Becoming involved in an agricultural commodity has been a clearly articulated objective of BC Iron, and this joint venture agreement with an expert potash company in Kalium provides us with the required exposure at low-risk.
“This move into potash, added to the pending conclusion of a scoping study on BC Iron’s Mardie Salt Project, positions BC Iron well in agricultural and other commodities leveraged to a growing global population.”
The Carnegie Project is a potash exploration mine situated nearly 220km north-east of Wiluna.
The project is known to host a large sub-surface brine deposit that could be developed into a solar evaporation and processing operation that produces sulphate of potash.
Kalium managing director Brett Hazelden said: “This is an excellent outcome for Kalium. It delivers funding from a strong partner in BC Iron to advance Carnegie, while Kalium continues to focus on its flagship Beyondie Project.”
Under the agreement, BC Iron can earn a 30% interest in the Carnegie Project in the initial scoping study phase by providing its mobile camp facilities to the JV and funding the first A$1.5m ($1.15m) of expenditure.
At the pre-feasibility study phase, BC Iron can earn additional 10% interest in the project by funding an additional A$3.5m ($2.68m) of expenditure through Stage 2.
During a feasibility study phase (Stage 3), BC Iron can elect to earn an additional 10% interest in the Carnegie Project (for a total interest of 50%) by funding a further $5.5m of expenditure through Stage 3.
Image: Kalium Lakes and BC Iron managing directors Brett Hazelden and Alwyn Vorster. Photo: courtesy of BC Iron.
