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.
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.