- St Barbara (SBM) has satisfied conditions to acquire a 70 per cent interest in Australian Potash’s (APC) Lake Wells Gold Project
- The companies have formed an unincorporated joint venture to continue exploring, developing and mining non-potash minerals at the project
- Australian Potash does not have to contribute to project expenditure until St Barbara completes a bankable feasibility study for Lake Wells
- Australian Potash is in the grey and trading at 16 cents per share, while St Barbara is up 0.48 per cent and trading at $2.09 per share
St Barbara (SBM) has satisfied conditions to acquire a 70 per cent interest in Australian Potash’s (APC) Lake Wells Gold Project.
In October of 2018, Australian Potash and St Barbara entered into an earn-in and joint venture agreement over the Lake Wells Gold Project. Under the agreement, St Barbara had to contribute a total of $5.25 million in expenditure commitments at the project, in order to earn up to a 70 per cent participating interest in the project tenements.
The agreement’s first earn-in period required expenditure commitments of $1.75 million, while the second earn-in period necessitated $3.5 million in project expenditure. St Barbara completed the first earn-in period in January of 2020.
Having now completed the second earn-in period, St Barbara has met its expenditure commitments and earned its right to 70 per cent interest in the Lake Well gold tenements.
Australian Potash and St Barbara have now formed an unincorporated joint venture, in order to continue exploring, developing and mining non-potash mineral resources at the project.
Under their agreement, Australian Potash will have a free-carried 30 per cent interest in the Lake Well gold project tenements. As such, the company will not be obligated to make any contributions to project expenditure, at least until St Barbara completes a bankable feasibility study into the development of any non-potash orebody within the project tenements.
Australian Potash is in the grey, trading at 16 cents per share at 11:22 am AEST.
St Barbara is up 0.48 per cent, trading at $2.09 per share at 11:57 am AEST.