Blackham sells potash assets to Salt Lake for $10m

Blackham Resources has struck a deal to sell its Lake Way tenements to Salt Lake Potash for $10 million in cash.

Under the agreement, Salt Lake will pay a $3 million non-refundable deposit and $7 million at completion of the deal, which is expected to occur by the end of September.

The sale means Blackham has its 4 per cent brine royalty cancelled, but retains certain gold mining rights for the tenements and Salt Lake’s neighbouring assets.

Blackham will also provide Salt Lake with access to groundwater.

Salt Lake said an opportunity also existed to utilise part of the pre-strip material from Blackham’s proposed Williamson pit development for the construction of Salt Lake’s on-lake evaporation ponds.

The potash hopeful will contribute up to $10 million to the pre-strip of the Williamson pit if this both parties agree on terms for this additional deal.

Salt Lake chief executive Tony Swiericzuk said the deal would provide significant benefits to the Lake Way project and further support the rapid progress towards first production.

The Lake Way project is around 15 kilometres south of Wiluna.

Today, Blackham also announced it produced 65,406 ounces of gold for the 2019 financial year at an all in sustaining cost of $1,760 per ounce.

This was slightly worse than its guidance of between 66,000oz and 68,000oz, at an AISC of around $1,700/oz.

Shares in Blackham were flat at 1.2 cents each at 3pm AEST.

Shares in Salt Lake were up 0.7 per cent at 75 cents each at 2pmAEST.