BC Iron in $10m JV with Kalium

BC Iron is branching out of its iron ore focus by spending up to $10.5 million as part of a joint venture with freshly listed sulphate of potash explorer Kalium Lakes.

BCI can earn up to a 50 per cent interest in Kalium’s Carnegie sulphate of potash project by spending up to $10.5 million on exploration up to the completion of a feasibility study.

The project, located 220 kilometres north-east of Wiluna is considered prospective for hosting a large sub-surface brine deposit which could be developed into a solar evaporation and processing operation that produces sulphate of potash.

BCI managing director Alwyn Vorster said through the joint venture the company would gain exposure to a highly prospective project in an agricultural commodity with attractive long-term dynamics.

“This joint venture agreement with an expert potash company in Kalium provides us with the required exposure at low risk,” he said.

“Kalium’s management team is experienced and competent, with key members known to BC Iron as previous Iron Ore Holdings employees that were instrumental in completing the Buckland project feasibility study.”

Perth-based Kalium listed on the ASX in late December and has steadily increased its share value since opening at 20 cents.

Its shares closed 10.3 per cent higher today, at 32 cents each.

BCI shares were 6.2 per cent lower to 22.5 cents.